Stagnation in the beef production segment has been noted in Russia
Beef consumption growth is not expected.
Major players refuse new projects, there are practically no investments. Experts believe that the reason lies in the low, and sometimes negative, profitability of production and long payback periods of investments (10-15 years).
According to the forecasts of the National Meat Association, in 2023, the production of beef in live weight will grow by only 1.7%, and even this is just the result of last year's low base and the acceleration of slaughtering against the background of the crisis in the dairy industry.
At the same time, livestock coming from the dairy industry is a cheap commodity, since it has paid for itself for a long time, which significantly reduces its cost. Powerful competition from cheaper types of meat – pork, chicken, and turkey contributes to this. Imports, in turn, negatively affect the situation: 79 thousand tons of beef were imported into the country in the first half of the year.
In Russia, beef is traditionally expensive meat, so there is no growth in its consumption.
Most industry participants believe that to change the situation, it is necessary to strengthen state support for large players, stimulate production in small and medium-sized farms, and protect the market from imports.
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