World meat industry news

Russia in the first two months of 2023 increased the total volume of meat production at the expense of agricultural organizations. In January-February, enterprises increased production by 4.9% year-on-year, to 1.5 million tons of meat in carcass weight (Fig. 1). We are talking about all the main types - poultry, pork, beef, lamb and goat meat. The main volume - 52% - falls on poultry meat, 42% - on pork, 6.3% - on beef, 0.1% - on mutton and goat meat.

Pork keeps getting cheaper

By March 1, 2023, the number of pigs in all categories of farms increased by 5.6% year on year and amounted to 28.3 million heads. In agricultural organizations, their number increased by 7.5% (by 1.6 million heads) and reached 26 million heads. In the households of the population, the livestock decreased by 22.8% (by 0.7 million heads) and has 2.3 million animals.

In the first two months, agricultural enterprises produced 626 thousand tons of pork in slaughter weight, or 854 thousand tons in live weight (Fig. 2), which is 8%, or 46.5 thousand tons, more figures for the same period last year.

At the end of March, pork in half carcasses cost an average of 155 rubles per kilogram, which is 25% lower than a year earlier. The reduction in prices is ensured by the growth in the production of not only pork, but also poultry meat, which in this case is a substitute product. This helps to increase the capacity of the Russian meat market.

According to expert estimates, the volume of pork supplies abroad in January-February (excluding the EAEU, hereinafter) decreased by only 5% in physical terms, but increased by 12% in value terms. The key countries importing Russian pig products are Vietnam (75%), Serbia (9%), Mongolia (8%) and Hong Kong (7%).

Growth in poultry meat production slowed down

In early March, there were 471 million poultry in agricultural organizations, which is 1.6% more than in the same period last year. In January-February, poultry meat production amounted to 779 thousand tons in slaughter weight, or 1.061 million tons in live weight (Fig. 3), which is 2.8% more than last year.

At the end of March, the cost of a domestically produced broiler carcass decreased by 20% year-on-year and amounted to 128 rubles per kilogram.

According to experts, the supply of poultry meat abroad in January-February decreased by 9% in physical terms and by 2% in value terms. Its key importers are China and Saudi Arabia, the total volume of exports to these countries amounted to 24.4 thousand tons in the amount of 62.6 million USD. There is a growing interest in Russian poultry products from Vietnam, Benin, Uzbekistan and the United Arab Emirates.

Beef is getting more expensive

As of March 1, the number of cattle in the country as a whole totaled 17.7 million animals, which is 1% less than on the same date last year. The number of cows decreased by 0.4% to 7.8 million heads.

Agricultural enterprises contain 45% of the cattle population. Over the year, the number of animals in them decreased by 0.4% - to 7.906 million heads.

In January-February, agricultural organizations produced 94.1 thousand tons of beef in slaughter weight, or 165 thousand tons in live weight (Fig. 4), which is 1.1% more than a year earlier.

Export deliveries of beef to non-CIS countries in January-February fell by 29%, according to experts, to 3.9 thousand tons in the amount of 23.6 million USD. Such dynamics is associated with a decrease in the supply of Russian products to key consumer countries: China (-8% in physical terms), Saudi Arabia (-39%) and Uzbekistan (-68%).

By the end of March, the average wholesale prices for half-carcasses of cattle increased by 22% per year and amounted to 354 rubles per kilogram.

Lamb exports grow

According to Rosstat, by the beginning of March, the number of sheep and goats in all categories of farms decreased by 1.1% compared to last year, to 20.3 million heads. In agricultural organizations, the number of these animals increased by 1.5% over the year, reaching 3.068 million heads.

Lamb occupies a small share in the main volume of industrial meat production, but large agro-industrial enterprises declare and are already implementing investment projects for the production and processing of mutton.

The production of mutton and goat meat in Russian agricultural enterprises in January-February amounted to 1.6 thousand tons in slaughter weight, or 3.5 thousand tons in live weight (Fig. 5), which is 28.4% more than in the same period last year.

According to estimates, the export of mutton increased by 90% in physical terms in two months - up to 16.5 tons in the amount of 60 thousand dollars. The main demand for Russian products was demonstrated by the United Arab Emirates (89%) and Japan (6%).