World meat industry news

The growth of the agro-industrial complex in the Russian Federation in 2020 exceeded 3%. 4 sectors showed significant growth: pork production, poultry production, apple and greenhouse vegetables production. Growth slowed in January 2021, although the livestock sector continues to show a positive trend.

Thus, the total number of livestock and poultry increased in all farms over the month, although on an annual basis there was a decline due to a decrease in the number of poultry and small cattle. At the same time, there is an increase in the production of livestock and poultry for slaughter (in live weight) in farms of all categories on an annual basis.

The decline in meat imports in Russia continues. At the same time, external supplies of meat products abroad are steadily growing, although the situation with the supply of Russian poultry to China (Beijing stopped purchases of poultry from several enterprises after the discovery of traces of coronavirus on the packaging) may spoil the export performance of the meat sector.

Incentives for the development of the agricultural sector remain, although a negative assessment of the state of winter crops may negatively affect the sector's growth in the short term. But so far, an increase in the dairy sector and pork production will make a positive contribution to the dynamics of the agricultural sector.

At the same time, due to increased costs for agricultural producers, prices for products may rise. First of all, we are talking about a rise in the price of grain due to the rise in world prices and the increase in the costs of the agro-industrial complex (growth in fuel prices, an increase in the tax burden, import component - pesticides, fertilizers, etc.). This will lead to an increase in prices not only for flour, cereals and bread, but also for eggs, milk and meat. However, the price tag for pork and poultry, while maintaining the current economic situation and limited purchasing power of the population, will not rise significantly.