Russian beef sector: economic analysis and forecast

Author:

Kostenko O V

Abstract

Abstract The article presents research results on the Russian beef production sector. As in the rest of the world, beef in the Russian market is losing the competition to pork and poultry. Beef is the most resource-intensive type of meat in terms of feed consumption and land requirements. The industry has a longer herd reproduction period and return on investment. The Russian beef market is in a long-term decline. Domestic production is declining, and imports have been declining since 2015. The level of consumer prices for beef is 1.5-2 times higher than the price for pork and poultry. According to the study results, several key factors in the industry’s recovery from the crisis were identified. It is necessary to radically increase the share of beef obtained from beef cattle. This will allow obtaining better quality meat and reducing its cost. Now the share is about 20%, while in the world, beef cattle account for 40%. The construction of food chains in beef cattle is different from other agricultural sectors. The model of a combination of vertical integration (holdings) and cooperation with small independent producers is effective. The formation of such networks can be accelerated by creating and stimulating regional clusters. Russian beef has significant competitive advantages in foreign markets. In Russia, the use of steroids, growth hormones, and feed additives that stimulate the muscle mass of livestock is prohibited. Russian government programs have proven their effectiveness in other agricultural sectors. In this case, resources are needed to support clusters and cooperation in meat food chains.

Publisher

IOP Publishing

Subject

General Engineering

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