World meat industry news

Exports of Russian agricultural products to the BRICS countries may increase by approximately 6% by the end of 2024. Agriculture Minister Oksana Lut said this following a meeting of BRICS agriculture ministers, TASS writes. She noted that the BRICS countries are one of the priority markets for Russia: last year, the association accounted for more than a third of Russian exports of agricultural products - $15 billion, which is 18% more than in 2022. “Based on the current dynamics, we see the possibility of a significant increase in supplies and expect that their volume at the end of the year will exceed $16 billion,” Lut estimated, adding that since the beginning of 2024, exports of Russian agricultural products to the BRICS countries have amounted to more than $7 billion.

The head of the agricultural department said that at the meeting of the ministers of agriculture, the possibilities of expanding interaction between the countries were considered, and new points of growth were identified. “We will continue to do everything to ensure the stability of the food market of the BRICS countries, acting as a reliable supplier for our partners,” Lut emphasized.

On the eve of the ministerial meeting, a Conference on food security and sustainable agricultural development was held, within the framework of which the federal center “Agroexport” and the Ministry of Agriculture organized a panel discussion “Development of mutual trade in agricultural products of the BRICS countries.” The head of Agroexport, Dmitry Krasnov, whose words are quoted in the center’s message, recalled that the BRICS states account for more than 30% of agricultural land, over 40% of world production of grain crops and meat, almost 40% of dairy products and more than 50% of total fish production and seafood. “The BRICS countries account for almost 20% of world trade turnover, and during the period from 2018 to 2022, the volume of exports of agricultural products from the BRICS countries increased by 43%,” he cited data.

BRICS is the superpower of the global agricultural market, emphasized Eduard Zernin, Chairman of the Board of the Union of Grain Exporters. Thus, in the 2023/24 season, the countries of the association accounted for 36% of global rice exports, 30% of corn, 28% of wheat. According to him, this is important for understanding the role of BRICS in solving the problem of hunger and ensuring food security, but the priority should be the tasks of self-sufficiency of the member countries of the association. “In addition to the largest exporters, they also include the largest importers, so there is potential for synergy that we can realize within the framework of a special trading platform,” Zernin said. In an interview with pole.rf, he clarified that the creation of the BRICS grain exchange will take several years.

The balances in the markets of the countries included in the bloc differ significantly, and therefore diversification, the removal of barriers and the most seamless opportunity to conclude contracts are important, noted Deputy General Director of the United Grain Company Ksenia Bolomatova.

According to the forecast of the executive director of the Fat and Oil Union, Mikhail Maltsev, the share of Russian exports of vegetable oils to the BRICS countries will increase, now it is 70%. In this regard, the issue of uninterrupted supply and meeting the needs of macro-regions comes to the fore, he noted. Therefore, it is necessary to develop alternative routes and create safety stocks. “We believe that in the coming years it is necessary to create logistics hubs that could accumulate products near destination countries and provide local logistics,” Maltsev suggested.

In general, Russian agricultural exports have increased by 16% since the beginning of the year and in physical terms exceeded 50 million tons, Oksana Lut cited data following the meeting of the BRICS Ministers of Agriculture. According to her, supplies of oil and fat, meat and dairy products are actively growing, and at the end of the season a record is expected for wheat exports, which will confirm Russia’s leadership in the world market. In addition, at the end of the season, our country will take first place in the supply of barley and peas for the first time. “We also count on a record volume of exports of sunflower and soybean oil,” added the head of the Ministry of Agriculture. At the same time, she drew attention to the fact that the fall in world prices for basic products led to a slight decrease in supplies in value terms relative to last year’s level. However, this figure is now gradually leveling out, and the ministry expects positive results at the end of the year.