Beef Demand Drops to Lowest in 10 Years

Beef consumption in Russia fell to 1.94 million tons, which is the lowest level in the last ten years, Kommersant points out, citing the Rosselkhozbank Center for Industry Expertise.

The reduction was fixed at 3.4% in 2020. Demand has been declining for the second year in a row. According to the head of the National Meat Association Sergei Yushin, consumers saved and chose cheaper poultry or pork in the face of a pandemic. He also pointed out that a significant amount of beef falls on the HoReCa segment - hotels, restaurants and cafes, and the segment, accordingly, was significantly reduced during the epidemic. Yushin noted that a decrease in consumption is noted in the segment of dairy breeds - up to 80% of the market - but consumption of beef of meat breeds has grown fivefold in seven years, amounting to 300 thousand tons. Premium cuts are consumed 12 times more - up to 30 thousand tons.

The head of the Center for Industry Expertise, Andrey Dalnov, is sure that the decline in demand for this type of meat is associated with a reduction in the production of cattle in personal subsidiary plots.

Note that the export of beef last year increased by 1-3% - up to 20 thousand tons. 45% of this volume is directed to China.

Retailers, on the other hand, have been reporting a drop in demand for cheap beef for several years. At the same time, sales of premium lines are growing.

In the past year, experts say, Russia has put abroad of agricultural products by $ 29.6 billion, which is almost 20% more than in 2019. The demand for meat added 73.4%.