World meat industry news

Sheep farming in 2022 has become the least vulnerable sector of agriculture. Experts and market players believe that in the coming years, an increase in demand and an increase in the production of mutton in the South and the Caucasus is expected.

In 2022, the sheep industry proved to be the most resilient to feed production and processing challenges. According to Professor, Doctor of Agricultural Sciences DonGAU Yuri Kolosov, the share of mutton production in the country is about 3% of the total. At the same time, domestic producers have enough resources to double the production of lamb by 2035.

In particular, the professor identified a great potential for the development of sheep breeding in the Rostov region. According to him, there are about 2 million hectares of land suitable for hayfields and pastures in the region. These areas must be rationally used with the help of sheep breeding.

“The potential of the Rostov region is very large. We have almost 2 million hectares of land that are hayfields and pastures. And in order to professionally manage the economy, it is necessary to exploit them skillfully and rationally. But now we have animal husbandry, including dairy, cattle breeding, goes under the roof. And these vast territories, it turns out, are abandoned. It is not right. They need to be used in the management system with the help of sheep breeding,” said the professor.

At the same time, the academician noted, it is impossible to say exactly when the region will be able to reach the peak of its potential. It mainly depends on the economic course of the region's development and state support.

In turn, the processing enterprises of the Rostov region in 2022 produced 480 tons of lamb meat, which is twice as much as a year earlier. Total production of mutton in live weight last year amounted to 21.76 thousand tons. According to the regional Ministry of Agriculture and Food, this is slightly more than the result of 2021 - by 1.4%. Thus, the share of peasant farms in the production of mutton in live weight amounted to 7.92 thousand tons, agricultural organizations - 900 tons, population - 12.94 thousand tons.

According to the department, lamb from the Rostov region is not only sold outside the region, but also exported. The Don Ministry of Agriculture noted that the demand for this type of meat is growing. This is evidenced by the increase in its production both in the region and in the whole country.

“The production of lamb meat directly depends on the demand for products. Processing enterprises of the Rostov region intend to produce mutton meat not lower than the level of 2022, if necessary, they are ready to increase the output. So, for example, according to the results of two months of 2023, 0.14 thousand tons of lamb were produced, which is two times more than the same period last year,” the ministry noted.

In addition to the South, the regions of the Caucasus also have significant potential for the development of mutton production, the head of the National Meat Association, Sergei Yushin, said earlier.

“In Russia, there is potential for growth in the consumption of this meat. First of all, as physical availability grows, because lamb is still expensive meat. And of course, the export potential, given the location of the regions, is also present, and it is very obvious,” said the head of the association.

Sheep breeding in the Caucasus is in stable condition

The Ministry of Agriculture and Food of Dagestan confirmed that, despite the general situation on the world market in 2022, the increase in livestock costs, fluctuations in feed prices and other cost components, the price situation in the markets of the region for mutton meat during the year remained relatively stable. In total, in the region, according to the results of 2022, the production of sheep and goats in live weight in the farms of Dagestan amounted to 75.41 thousand tons, in slaughter weight - 37.4 thousand tons. These indicators exceeded the results of the previous year by 12.7%. This type of meat is produced by almost 25 thousand sheep farms.

“From year to year, the number of producers engaged in sheep breeding and showing interest in the industry does not decrease. In the region, sheep breeding is not just a branch of animal husbandry, but for many people it is a traditional way of life that provides food, and also brings income, stability, ”the Ministry of Agriculture of Dagestan said.

In another Caucasian region, Stavropol, sheep breeding remains a socially significant sub-sector of animal husbandry and is an integral part of agricultural production. According to the local Ministry of Agriculture, in terms of the number of sheep and goats, the Stavropol Territory ranks 4th in the country. As of January 1, 2023, there were more than 1.2 million sheep and goats on farms of all categories. At the end of 2022, the farms of the Stavropol Territory produced 29 thousand tons of lamb, which is slightly less than the result a year earlier - 29.3 thousand tons.

"This sector not only provides the needs of the population for raw materials and food products, but also solves a number of social issues, especially in the eastern zone of the Stavropol Territory,” the department added.

In 2023, the Stavropol Territory plans to maintain the production of mutton meat at the level of the previous year. “Speaking of mutton meat and the potential of the region in its production, thanks to new, high technologies in production, we plan to increase the production of mutton by 2025 to 31 thousand tons and profitability up to + 30%,” the Ministry of Agriculture said.

Market players predict growth

The Ministry of Agriculture of the Stavropol Territory also explained that new areas of activity contribute to the increase in indicators in the production of lamb. In particular, this is the implementation of the project by the Damate group of companies in the Caucasus.

As Leonid Khanukaev, head of the Lamb division of Damate Group of Companies, commented, in September 2022, the company launched Russia's largest mutton slaughter and processing plant in Karachay-Cherkessia. Its capacity is 25 thousand tons of products per year. In addition to the plant, the project includes breeding and fattening yards for 80,000 livestock places, a service company for working with farmers, and a genetic line.

“We produce a wide range of lamb products at the plant under the Bazarco brand. Today it is sold through federal and local retail chains and online sales channels in the Southern Federal District, the Central Federal District, and frozen products are sent to the Far East. In the near future we will start deliveries to the Volga Federal District and Siberia. This spring, we sent the first batch of lamb to Saudi Arabia,” Khanukaev shared.

According to him, about 200 thousand tons of lamb are currently produced in Russia. However, this is not enough to meet growing domestic demand.

“Lamb is a niche product with great growth potential. It has a number of advantages that affect the further growth of demand. This meat is rich in protein, vitamins and minerals necessary for maintaining health and well-being. Lamb contains potassium, sodium, calcium, magnesium, phosphorus, vitamins B1, B2, PP, and iron in it is 30% more than in pork. The fats contained in it are healthy - monounsaturated and polyunsaturated. Cholesterol is 2.5 times less than in beef, and four times less than in pork. Lamb also contains conjugated linoleic acid, which accelerates metabolic reactions and promotes weight loss,” said the head of the Lamb division of Damate Group of Companies.

Thus, Khanukaev concluded, the company's development of mutton production will not only meet the current demand for mutton and significantly increase its consumption in the next few years, but also increase the export of this type of meat.