Why Dairy & Meat Industry 2017 is your trade show destination
Published on 22/02/2017
While food import bans have been bad news for exporters, they have been almost a positive for Russia’s meat and dairy farmers. With self-sufficiency as the end goal, Russia is seeing production levels rise in this sector – but it needs international machinery suppliers to help meet targets.
If your business can help supply Russia with the equipment, technology and machinery it needs to maximise its meat and dairy industries, then Dairy & Meat 2017 is where you need to be.
Production increases but shortages remain in Russian dairy
Since embargos were put in place in 2014, Russian dairy output has been steadily growing. 2015 saw 30.7 million tons of raw milk produced across the nation – a 1% increase compared with 2013’s pre-embargo levels. In total, Russia supplied 6% of global raw milk volumes that year.
Still, Russia is targeting self-sufficiency in dairy production by 2020. And, according to Russian agricultural news portal Agro.ru, 2016 saw a retraction in production volumes. In part, this was due to a shortage of appropriate cattle throughout the nation. Russia is 75% self-sufficient in dairy supply at present, according to government sources.
Cheese production too has maintained its pre-embargo levels. 2015 enjoyed a production output of close to 860,000 million tons. Annual Russian consumption of dairy products amounts to 190-250 kilograms per capita, at a rate of 300-350 kg per year.
A plan is in place to light a fire under Russian dairy production – to the tune of $450 million worth of investment. The government is planning to build a spate of new dairy farms nationwide from now until 2020. It is hoped these fresh sites will boost milk production output to 35.7 million tons a year.
For example, the biggest dairy complex in Russia’s Far East is gearing up for construction. Located on Sakhalin Island, it is hoped the $194 million complex to produce 120 tons of milk daily.
The structure of agricultural production will shift in the next 10 years, says Minister of Agriculture Alexander Tkachyov. 50% of Russian output will fall into the hands of major agroholdings, with SMEs filling in the gap. It is here where the opportunities for foreign firms to supply cutting edge equipment to those who will need most in the coming decades.
Battling imports a key concern for Russia’s meat sector
In order to conform with Russia’s ongoing import substitution policy, meat producers and farmers will have to step up their games. That means boosting output through more investment in updating factories, farms and production sites around the country.
The signs are already starting to shows. The first quarter of 2016 saw Russian firms producing 9% more meat and meat products. Poultry production was up 4% year-on-year across 2016, hitting a peak of 3.7 million tons. Turkey farming produced a 34.9% growth in live weight tonnage, recording final totals of 205,000 tons in 2015 alone. Beef, despite falling consumption levels, posted a 13% rise in October 2015 too.
Mirroring dairy, meat production is of key interest for the Putin administration. Government support is wide spread with hundreds of millions of dollars being allocated to the industry – mainly in the form of funding for farm and factory modernisation. $144 million was apportioned to the meat industry in 2016. 2017 will see Russian producers enjoy $166 million worth of governmental financial aid.
The state is also footing the bill for a cross-country livestock farming upgrade programme. $80 million will be given to farmers in order for them to update or replace their existing rearing facilities.
Meat imports are expected to tumble to below 500,000 tons throughout 2017, after years of prior decline. Russia has a real need to maintain, or boost, its meat production levels by at least 2020 if it is to meet self-sufficiency targets.
Dairy & Meat Industry 2017 is your gateway to Russian success
Capitalise on this increased need for world class technology at the
Dairy & Meat Industry show in Moscow. Running from 28 February – 03 March at Moscow’s Crocus exhibition centre, this event presents the full agro-industrial production cycle for the dairy and meat industry, showcasing the very best in equipment and machinery.
Here, international suppliers connect with dairy and meat figures from all regions of Russia. It still is not too late to register your interest in attending this prestigious event.
Contact us now to learn more.