World meat industry news

From January 1 to December 5, 2021 (EAEU data for January-September) Russia supplied various categories of meat to foreign markets in the amount of $ 1.02 billion, which is 30% more than in the same period in 2020. In physical terms, the volume of shipments increased by 2.2% and reached 469 thousand tons. In the structure of export revenue, 46% accounted for poultry meat, 34% - pork, 19% - beef.

In 2021, Russian meat was supplied to more than 65 countries. The largest buyer remains China, which accounts for more than a third of the total Russian value of supplies in the meat category. In less than 2021, 135 thousand tons of meat worth $ 364 million were sent to China. The top 5 importers also include Vietnam, Ukraine, Saudi Arabia and Belarus.

Poultry meat

Poultry meat retains a leading position in the structure of export sales of the meat category this year. According to the Federal Customs Service, as of December 5, since the beginning of the year, the volume of deliveries amounted to $ 464 million, which is 19% more than the same period last year. In physical terms, the volume of shipments, which was declining at the beginning of the year, has now recovered and is slightly above the level of 2020 for the same period – 265 thousand tons.

The main export trends this year were the reduction of supplies in the directions that dominated last year - to China, Ukraine, Kazakhstan, says Sergey Lakhtyukhov, Director General of the National Union of Poultry Breeders. Shipments in kind to China decreased by 17% to 115 thousand tons, to Ukraine - by 30% to 25 thousand tons, to Kazakhstan - by 25% to 26 thousand tons, and the combined share of these markets in value decreased from 82% to 64%. "Taking into account the fact that the total volume of exports, after a significant drop at the beginning of the year, has already reached the level of last year, we see that exporters are able to diversify their activities. The physical volume of supplies to the countries of the Cooperation Council of the Arab States of the Persian Gulf, African countries, as well as to Vietnam has increased by 2 times. The list of countries to which poultry products are exported has also expanded," Lakhtyukhov told Agroexport.

If we talk about the dynamics of deliveries within the year, he pointed to a significant increase in monthly shipments to the Middle East and Belarus in the second half of the year. Also, compared with the beginning of the year, shipments to China have increased, although they have not yet reached last year's values, there is a recovery in exports to Kazakhstan. "In general, we maintain the forecast of achieving last year's level of export volumes in kind by the end of the year, despite all the problems associated with the sensitive destabilization of the container transportation market and the emergence of new, often unexpected requirements of importing countries in terms of product safety," Lakhtyukhov said.

Pork

Russian pork exports from January 1 to December 5, 2021 amounted to $ 348 million, which is 19% more than the same period last year. The physical volume of shipments decreased by 0.9% to 169 thousand tons.

A significant increase in the value volume is primarily due to structural changes in the supply of more expensive pig products, draws the attention of the Director General of the National Union of Pig Breeders Yuri Kovalev. So, according to him, currently about two-thirds of exports are meat and only one-third are by-products.

However, unlike poultry meat, the main growth in pork exports was formed in the first half of the year. "In the second half of the year, a slight decrease is recorded relative to last year's figures due to the sharp intensification of competition and lower prices in the markets of Southeast Asia. However, in the whole year, we expect the preservation of last year's volumes, which will amount to 200-210 thousand tons. As for the cost volume, it can reach $ 400 million," Kovalev added.

Vietnam has strengthened its position as the largest buyer, occupied last year. In less than 12 months, shipments to the Socialist Republic increased by 49% year-on-year to $172 million (84 thousand tons, +50%). Thus, in 2021 Vietnam accounts for almost 50% of Russian pork exports. The second place is occupied by Ukraine - 74 million dollars (+22%), the third - Belarus (55 million dollars, +47%).

The slowdown in the dynamics of the physical volume of shipments suggests that the potential of the markets in which Russia is already present is almost exhausted, warns Kovalev: "So, in Vietnam we already occupy about half of the entire imported pork market. Therefore, if there is no opening of new destinations (for example, the Philippines or China), significant growth next year is unlikely to be expected."

Beef

As of December 5, since the beginning of the year, Russia has increased exports of cattle meat by 2.7 times in annual terms, to $ 191 million. In physical terms, shipments increased 2.2 times to 29 thousand tons.

The growth driver was beef supplies to China, which increased 3.65 times to $ 131 million in monetary terms and 2.7 times to 19 thousand tons in kind. Since the opening of this market in early 2020, the volume of deliveries has been steadily increasing, and since May it has exceeded 1.5 thousand tons per month.

The second place among importers is occupied by Saudi Arabia, which increased the import of beef from Russia by 41% to $ 21 million. Morocco is in the third position, where Russia first began to supply beef in 2021. As of the beginning of December, the volume of shipments amounted to 2 thousand tons for $ 8.4 million.

"The volume of Russian beef exports has already exceeded forecasts for 2021, which was facilitated by several factors. Firstly, this year beef prices in many countries of the world have grown noticeably, and therefore Russian products have become more competitive in some markets. Secondly, the largest buyer of Russian beef is China, which increases the import of cattle meat from year to year. The culture of consumption in China is gradually changing, and we see that with the growth of household incomes, beef occupies an increasingly prominent place. So far, the Chinese consume an average of 7 kg per year per capita, while in Russia this figure is 13 kg. The third factor is the work of state bodies to support exporters, organize logistics routes, etc.", - listed the head of the National Meat Association Sergey Yushin.

As for the prospects for 2022, according to him, the dynamics of export shipments will depend on many circumstances, including restrictive measures in the context of a pandemic, pork prices in China, etc. "However, in general, the global beef trade is growing from year to year with the stagnation of global production. This means that demand and price will only grow. In this regard, Russia, with more active investment in beef cattle breeding, has the opportunity not only to provide its own market with high-quality beef, but also to steadily increase supplies to foreign markets," Yushin is sure.