Slow growth forecast for Russian meat industr...

Slow growth forecast for Russian meat industry

Despite the Russian meat industry having grown quickly over the last decade it is expected to drop over the next 10 years due to Russia's new World Trade Organisation (WTO) membership and lower projected domestic consumption growth.

According to a new report by Rabobank, the pork industry will be particularly impacted by the new membership, with slower growth rates as a result.

However, the report also stated that it considered the outlook for the Russian industry positive when it came to poultry, pork and beef, despite an expected drop in growth compared with the previous decade. The meat sector will see a shift towards higher-value products, rather than volume.

The Russian population has been declining by 0.2% per year, but the higher consumption of meat is due to increased wealth and income in the country. Cattle has failed to follow the growth over the past decade, which is due to the industry's long payback time compared to other animals, in addition to the cold weather.

The report further stated that the poultry value chain is the most modern in the Russian meat industry, with 90% of production coming from industrial production.

Rabobank added: "The most influential factors on the outlook for the Russian meat industry in the coming 10 years will be economic development, market demand for meat products, the ADP published in July 2012 and Russia's access to the WTO in August 2012."
Source: Rabobank
WHO Rabobank