Agribusiness Leaders review provisional results of the year at a conference in Istanbul
On October 17-21, representatives of Russia's leading poultry and pork producers, as well as foreign partner companies, discussed challenges, industry trends and key topical issues.
Sergey Lakhtyukhov, CEO of the National Poultry Union, presented the overview of 2022 results, forecasts and trends for 2023-2024. Last year showed good results: for the first time the threshold of 7 million tons of live weight poultry production in farms of all categories was exceeded. The industry shows stable growth, and remains at the forefront in terms of poultry exports. At the end of 2022, the Russian Federation entered the top 10 exporting countries, taking almost 2.5% of the foreign market. Compared to 2019, supplies increased by almost 70%, while the imports decreased by over 20%. Russia is confidently heading towards being fully supplied with its own hatchery eggs. The import reduction trend continues in the current year: in 7 months, there was a decrease in the import volume of 35%. Since 2019, the imports of hen hatching eggs have almost halved.
Yury Kovalev, CEO of the National Pork Union, analyzed the pork market and spoke about the market development forecasts. In the first half of 2023, the production has increased by 5.9%, the average price of pork has dropped by 4% and became one of the most affordable globally, which is keeping imported products out of the market. There is no room for reducing imports - they are virtually non-existent. Exports in 2023 began to rapidly recover: about 135 thousand tons of pork products were sold in the first half of the year and this figure is likely to reach 200 thousand. Thus, supplies to Vietnam have almost doubled, reaching the level of 2020-2021; Belarus remains the key destination. 2020-2021 resulted in Russia ranking 8th-9th in the rating of global exporters. To reach the TOP-5 level, exports need to be at least doubled to 400 thousand tons. The expert says that opening new markets will help achieve this goal.
Global meat production and consumption will continue to grow, with a 20% increase in consumption by 2032, reported Sergey Kaspariants, VIC Group Executive Director. Russia is one of the largest producers, ranking among the top 5 countries in the world. However, it has some strong dependence on imported supplies. For example, in the veterinary drugs industry, the share of foreign products in the actual commercial vaccine market is 75-80%. This indicator amounts to 95% in the Republic of Belarus. "We discuss these challenges with confidence, because we are ranked 21st in the global ranking of veterinary companies, therefore, we understand what veterinary rules apply in the market - we export to 50 countries, including continued exports to the European Union. However, our products are not subject to sanctions, we are actively developing in other markets, for example, in the last six months the demand for our products in Asia and Africa has increased dramatically. In 5 years we expect intensive construction of new production facilities in the domestic market - almost all major manufacturers have started investing in new production sites", - says Sergey Kaspariants.
Over 150 participants joined the rich and inclusive program of thework during four days, about 50 reports were delivered, and several major discussions were held. All these are expected to give an impetus to the new effective projects in the future.
