World meat industry news

All news / Miratorg loses weight

  • 29 Aug 2019, 07:20

Active consolidation in agribusiness affects the balance of power among market players. According to Infoline, Miratorg Agribusiness Holding, the first in terms of revenue in the industry, may give way to Rusagro group in 2019. Цршду Miratorg’s revenue can grow by only 7%, to 119.41 billion rubles, then Rusagro’s turnover after several mergers and acquisitions will increase to 120–125 billion rubles.

The three largest agricultural holdings in Russia in terms of turnover in 2019 may change, follows from calculations in the Infoline rating. According to analyst Victor Linnikov, the first is the Miratorg Agro-Industrial Holding with revenue 111.6 billion rubles in 2018. According to forecasts, by the end of 2019, Miratorg's revenue may grow to 7%, to 119.41 billion rubles. The third-largest Rusagro Group of Companies, may increase revenue from 83 billion to 120-125 billion rubles.

Another large producer of meat and meat products - the Cherkizovo group  - is now in second place in the rating. In the first half of the year, the group increased revenue by 25.1%, to 55.7 billion rubles. According to Infoline, although the growth rate will decrease slightly by the end of the year, Cherkizovo will be able to compete with Rusagro for first place in revenue if Miratorg’s turnover does not increase by at least 8-10%.

The head of the National Meat Association, Sergey Yushin, points out that Miratorg is in an active investment phase: the holding doubles the pig-breeding division, increases the number of beef cattle, and invests in production. All this will lead to a sharp increase in revenue after 2019, he said.