World meat industry news

 The most expensive meat in Russia today remains beef. Such data were provided by specialists of the expert analytical center for agribusiness “AB-Center” in their latest recent study “Russian market of meat and meat products. Issue No. 12."

According to them, an unprecedented increase in prices began to be observed since last year. And the most expensive month for the entire study period was April of this year. In the next two months, as experts noted, there was a slight decrease in value, but in July-August the growth continued. According to Rosstat, as of July, in dollar terms, this meat cost $4.05. The reason for the rise in price was a serious decline in production. Over the past year, it fell by 3.2 percent or 52,800 to 1,620,700 tons in slaughter weight. During the first half of the year, there was a slight increase in the indicator - by 5,100, which, of course, could not correct the situation. The decline in prices could have been helped by the then-observed increase in imports. However, it also turned out to be too insignificant to stabilize the price. For example, last year the import of this meat in frozen and chilled forms increased by only 6,700 tons, and in the first half of the year there was a decrease of 100 tons. Also, during this period, imports of beef offal increased by 600 and 6,100 tons, respectively. Additional pressure on prices was exerted by the increase in the cost of imported products in ruble terms due to the fall of the national currency.

At the same time, prices for pork and poultry meat in the second half of last year, as well as in the first quarter of this year, mainly decreased due to, in turn, a noticeable increase in production. For the first type of meat, during this time it increased by 5.3 and 4.7 percent, or by 228,100 tons and 120,800 tons. For the second, the increase was 4.5 and one and a half at 230,700 and 38,700, respectively. In addition, the situation was affected by the relatively low cost of feed compared to last year. However, in the second and third quarters, both types of meat began to rise in price against the backdrop of a weakening ruble, and, as a result, an increase in production costs (for example, due to the use of imported feed additives, livestock, equipment and other components). In exact figures for Russia, pork (excluding by-products) as of July of this year averaged $1.91, poultry meat – 1.61.

The center’s analysts also compared prices for three types of meat in Russia and other major producing countries. In terms of pork, our country was compared with 11 others. She took second to last place in this indicator. Only Canada had lower prices – $1.72. The most expensive meat was in South Korea - $4.25. It is followed by a wide margin by Great Britain (2.89), Poland (2.88), Germany (2.76), Belgium (2.67), China (2.63), France (2.59), USA ( 2.2), Denmark (2.2) and Brazil (2.02). Beef in Russia turned out to be the cheapest, although this time prices in Russia were compared with only five countries. In addition, for one country, meat was divided into four categories. In Australia and New Zealand (a general calculation was carried out), beef cost $4.95, or 0.9 more than in our country. We are talking about an 85% lean trim sold FOB. Uruguay's price was $5.08. In the USA, frozen boneless imported beef with 90 percent lean cost 5.38, the same, but not imported and chilled - 6.46, and the categories SELECT (with an almost uniform structure and low marbling) and CHOICE (high quality with moderate marbling) – 6.2 and 6.83, respectively. This meat turned out to be much more expensive than all the above in China - 9.87. The cost of poultry, in addition to Russia, was compared in Brazil, China and the USA. For our country, prices have been announced for two categories, for the USA - four, for the other two countries - for one. Of all eight categories presented, the Russian Meatkings broiler carcass took fourth place in cost - 2.15, regular poultry meat - fifth with 1.61. The most expensive was the breast in the US at $3.13, followed by the carcass at $2.61. A carcass cost a little cheaper, $2.45, in China, and even less ($1.22) in Brazil. U.S. leg and hindquarter prices were 1.44 and 1.1, respectively.