World meat industry news

In 2022, the index of agricultural production amounted to 110.2%, Rosselkhozbank reports. This means that compared to the previous year, farmers produced 10.2% more agricultural products. This is the highest figure since 2011, when the index was 122.3%. Rosselkhozbank notes that crop production was the main driver of the result for 2022, the press service of the bank reports.

Russian crop growers have harvested record harvests of grains (157.7 million tons, +29.9% by 2021) and oilseeds (29.1 million tons, +17% by 2021). The greenhouse business also showed a record result (1.6 million tons, + 8.1% by 2021).

An increase was also noted in animal husbandry, where the main result - in 2022, a record was set for meat consumption per capita - 79 kg. The main contribution to meeting the need for animal protein is made by poultry farming. Production in this area increased by 4.4% yoy to 5.3 million tonnes (carcass weight). On the other hand, pork producing organizations increased their output by 5% to 4.5 million tons per year. These industries fully meet the demand in the domestic market, while due to high competition, poultry and pork remain affordable types of meat.

“From 2012 to 2018. Russia gradually reached full self-sufficiency in pork. Preferential loans to pig farmers laid the foundation for increasing production by 5-10% until 2024. The broiler meat industry also has good prospects: the construction of its own production facilities and the reduction in the purchase of hatching eggs abroad make it possible to strengthen self-sufficiency in poultry meat, which reached 105.6% by the end of 2022, ”comments Andrey Dalnov, head of the Center for Industry Expertise of Rosselkhozbank.

In such an important area as milk production and processing, positive dynamics was also noted. Thus, milk production for the year increased by 2% to 33 million tons. Processing industry drivers are cheeses and butter. According to RSHB forecasts, by the end of 2023 cheese consumption will increase from the current 6 kg per capita to 6.21 kg, butter - from 2.8 kg to 2.9 kg per person. The level of self-sufficiency in milk and dairy products in 2022 amounted to 85.7% (The threshold value set by the Food Security Doctrine is 90%).

Good results in the production of agricultural products made it possible not only to maintain exports under sanctions pressure, but also to increase it: +12.1% per year to $41.6 billion. This is 2.1 times more than in 2014.

In terms of M&A activity, according to the bank's Large Business Department, the total value of transactions decreased by 22.8% year-on-year to $1.19 billion, but remained high (for example, in 2020 the volume was $188 million).

“It is important that when foreign companies leave the Russian market, their production facilities come under qualified control from the domestic agro-industrial complex. The Russian agricultural industry has come a long way of development and has accumulated sufficient experience, therefore, the industry copes well with the challenge of changing the owners of foreign production,” Andrey Dalnov expects.