World meat industry news

Producers of sausages and meat delicacies are waiting for the opening of the Russian market for duty-free beef, which is in short supply in the Russian Federation. But livestock breeders oppose it, suggesting instead of Brazilian beef to get by with "neighborly" - Belarusian or Kazakhstani. Each side has its own commercial interests. Meat processors are interested in cheap raw materials for sausages, and livestock breeders are interested in the lack of competition from imports. The consumer is interested in the opportunity to buy quality products at an affordable price.

The decision on the duty-free import of 100,000 tons of imported beef for 2023 was made at a meeting of the subcommittee on customs-tariff and non-tariff regulation at the Ministry of Economic Development on October 18, 2022. "The Ministry of Agriculture considers it expedient to establish a quota for duty-free import of beef at the level of 100,000 tons in 2023. This measure will provide meat processors with the necessary volumes and types of raw materials," the Ministry confirmed to RG.

But such a step should be coordinated with the Eurasian Economic Commission (EEC), and they are not in a hurry to make a verdict.

The issue caused a heated discussion even at the stage of discussion within the country. The National Union of Meat Processors asked to allow the import of imported beef at a zero rate - in their opinion, this way it will be possible to keep prices for finished products. And in 2022, 200 thousand tons of imported beef with a zero import rate have already been allowed into our market. But farmers are opposed. The National Meat Association (NMA) notes that in almost all countries there are protective duties (from 40 to 200%) on the import of imported meat to protect the domestic market. So farmers get the opportunity to develop calmly, which is especially important for the production of beef - in comparison with pork, and even more so chicken, growing a beef steer is a much longer, laborious process.

This practice was used in Russia in relation to, for example, pork. As a result, there has been an excess of pork in the country for several years, last year its production increased by another 8%, and this year the growth will continue, the National Union of Pig Breeders said. And the prices for meat in these conditions almost do not grow: according to Rosstat, as of December 25, compared to the end of 2021, they are even lower by almost 0.8%, while inflation was 11.9%. Against this background, the consumption of inexpensive pork is also growing.

Livestock breeders believe that the same should be done in beef. Thanks, among other things, to duties on imported meat (at 15%), from 2017 to 2021, beef production has been slowly but steadily growing (plus 105 thousand tons) - in 2021 it amounted to 1.67 million tons. At the same time, imports decreased by 168 thousand tons. In 2021, 287 thousand tons of beef were imported into Russia. Allowing cheap imports to our market will discourage Russian business from developing. As a result, there will be less meat of our own, and we will again depend on imports. Whereas Russia with its territories could not only provide itself with beef, but also increase exports, experts say.

If outsiders are allowed into our market, then let it be the EAEU countries - Belarus or Kazakhstan. This idea is expressed in the National Meat Association. As the executive director of the Meat Union of Kazakhstan Askar Zhubatyrov told RG, in recent years the country has seen a positive trend in the number of cattle: in 2021, the production volume amounted to 540 thousand tons, in 2022 - about 560-570 thousand tons. And domestic consumption of beef is about 500 thousand tons per year. Surplus Kazakhstan is ready to export - primarily to Russia and China. True, now there are problems of a veterinary nature. Rosselkhoznadzor on January 12 introduced a ban on the import of animals and livestock products from Kazakhstan due to foot and mouth disease. But, according to Zhubatyrov, the outbreaks have already been eliminated. It is planned to lift restrictions until May.

According to Rosstat, the production of cattle for 11 months of last year actually decreased by 3.7%. At the same time, retail prices for beef, unlike poultry and pork, grew faster than inflation - by the end of 2022, they increased by more than 16%.

Last year sausages rose in price within the range of 7.5-9.5%. And the main argument of sausage producers is precisely that cheap imported beef will help to keep the rise in prices for final products. It will not work to replace it with cheaper meat (for example, chicken), at least in GOST sausages. For example, in the classic doctor's sausage recipe for 1 kilogram, you must definitely use 250 grams of beef. If earlier there were isolated cases of the release of a fake GOST doctoral thesis, then in the last couple of years this cannot be done: all data is recorded in the information system "Mercury" - if more chicken has entered the conveyor, it will not work to produce beef sausage from it, says the chairman of the board of the National Union of Meat Processors (NSM) Yulia Panferova.

According to her, processors would be happy to buy Russian beef, but its choice is not rich and the quality leaves much to be desired. According to Yulia Panferova, the most common problems are injections of raw materials (water or brine), as well as microbiological disturbances, due to which such meat cannot be used in the production of dried sausages. Meat processors are ready to buy raw materials in Kazakhstan too - the absence of borders makes delivery much easier. But while manufacturers are not familiar with the quality of these products, they are ready to make a decision only after an audit of Kazakhstani enterprises. There are fewer violations in Brazilian beef, where the production of cheap raw materials has long been established, says Panferova.

Sausage in Russia is a kind of barometer of the situation in the economy. In a crisis, its consumption is always growing

Without imports, beef prices will soar by 25%, which will lead to an increase in prices for finished products, Panferova predicts. But processors cannot raise the cost of their products so sharply - it limits their purchasing power. In addition, recently, Russian President Vladimir Putin, at a meeting with the head of the FAS, Maxim Shaskolsky, indicated that an important task for today is price control.

High-quality beef cannot be cheap by definition, we want low prices - we buy poultry and pork, livestock breeders say. But sausage is a completely different matter. For our country, sausage is not just a product, but a kind of barometer of the situation in the economy. From 1 kilogram of meat, after boiling, you can get 600 grams of the finished product, and by making boiled sausage from the same piece of meat - already 1.1-1.2 kilograms. It is easier to feed the population with sausage than with meat. In any crisis, the consumption of sausages and frankfurters is growing - people tend to eat and save money.

According to Yulia Panferova, 100,000 tons of imported beef will not make a difference for the country's beef farming, which produces more than 1.5 million tons a year. Rather, it is a point measure that will relieve tension here and now. Import will be used only in the production of finished products. And sausage producers will continue to focus on domestic raw materials - the total need for beef processing is estimated at 600,000 tons.

In addition, livestock breeders can count on state support. So, from 2023, part of the cost of cattle production will be reimbursed. We are talking about products that will be recycled. In 2023, 600 million rubles will be allocated for this measure.