The 2015 outlook for Russia’s meat industry is quite guarded. Negative economic trends including the devaluation of the rouble, the climbing cost of input such as feed and fuel, the high cost of production, the decline in real incomes, and the lack of available financing could all affect Russia’s meat industry and cause a decline in meat consumption in the country. In the first three quarters of 2014 the price of meat in Russia increased by 25% according to official statistics and meat companies saw an increase in spending also, which indicates a further push in meat prices. A report from the Cherkizovo Group, one of Russia’s largest pork and poultry producers agrees that the domestic meat industry has already been negatively affected by inflation, the reduction of incomes, and the devaluation of the rouble. Miratorg has not commented on the economic situation, but the company is moving forward on a major beef production project in Bryansk Oblast and will likely be significantly affected by a drop in demand.
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