Russian meat importers go domestic in 2006

RUSSIA - One of Russia’s biggest meat import firms, Euroservice, will begin building ten new meat processing factories for Russian meat this year to help satisfy consumers’ growing demand for meat, and especially sausage.

The first four factories in the Pensa Oblast (region) will cost Euroservice €277m and will help the firm take advantage of the Russian government's moves to increase domestic meat production.

"The import market cannot develop because of the quotas. According to quotas set up to the year 2009, the share of imports on the Russian meat market will grow by less than 3 per cent per year.

But, the market itself will grow much quicker— for instance, the chicken meat market grows around 15 per cent each year,” said Serghey Stankevich, chairman of the Euroservice committee of directors.

Euroservice got $350m of its $430m 2004 turnover from meat imports.

The firm has put a particular focus on increasing its domestic manufacture of sausages in 2006, aiming to go from the four to 20,000 tonnes per month. It plans to undercut competitors by charging RUR30 ($1) for a kg of frankfurters and RUR40 for a kg of sausage.

The move is driven by the soaring popularity of sausages in Russia.

The latest research from RBC says that sausage products are the fourth most popular food products, behind vegetables, fruit and bakery.

Demand for sausage generally rises in holiday periods, and production rose 3.8 per cent for the first six months of 2005 compared to the same period the year before.

Source: FoodProductionDaily