Cherkizovo Group shares insights into global meat market trends

October 15, 2019

Moscow, Russia – October 15 – Cherkizovo Group (Petelinka and Pava-Pava brands), Russia’s largest meat producer, took part in a meeting of executives heading Russian meat processing companies. Andrey Dalnov, the Company's Chief Analyst, spoke about global factors that are most likely to affect Russian meat producers in the coming years.

image001.pngCherkizovo Group’s Chief Analyst Andrey Dalnov spoke at the 6th All-Russian Convention of Owners and Executives of Meat Processing Enterprises, which was held on October 10 as part of Agroprodmash 2019, an exhibition hosted by Expocenter. Global environment in the next ten years is going to be favorable for all meat producers, he said, citing outlooks by the OECD and FAO. By 2028, per capita meat consumption is expected to increase from 34.7 kg to 35.1 kg, with the world’s population going up from 7.4 billion to 8.1 billion over the same period.

“Thanks to their affordability, poultry and pork will continue to dominate the meat market. In contrast to pork, poultry will further improve its position as the cheapest type of staple meat which is also easy to cook,” said Mr Dalnov. In ten years from now, per capita poultry consumption will likely rise by 5% to 14.8 kg, while the same figure for pork is forecast to decline by 3% to 12 kg. All this will see China as the key driver of global meat production: by 2028, the country will add some 9 mt to its annual output, coming ahead of the US and Brazil (nearly 6 mt and slightly under 4 mt, respectively).

China is already one of the most attractive external markets for Russian meat producers. Thus far, poultry has been Russia’s only export to this country, with chicken feet (approximately 80% of total poultry exports to China) and wings representing the bulk of supplies.

But Andrey Dalnov expects the Chinese pork market to open up to Russian producers very soon as the gap between pork prices in the two countries keeps widening, reaching a record high of USD 2.7 per kg in September. “The wider this gap is, the more likely China is to soften its stance and allow Russian pork into its market,” commented the expert.