Introduction

The meat industry is one of the socially significant sectors of the agro-industrial complex of the Russian Federation. The need for its development is due to an increase in consumer demand for meat and meat products, an average degree of investment activity and relatively high indicators of dependence on imports. Thus, the meat industry accounts for 1.2% of Russia’s GDP, and in the gross production of the food and processing industry – about 15%. The specifics of the production of the meat industry is closely interconnected with one of the most important sectors of agriculture – livestock. Therefore, ensuring economic growth and increasing the competitiveness of Russian producers in the meat and meat market is possible only with the accelerated development of animal husbandry.

1. Theme urgency

Meat industry – the largest sectors of the food industry, carrying out complex processing of livestock, as well as poultry, rabbits, producing meat, canned meat, sausages, as well as semi–finished products. Enterprises produce a wide range of not only food products, but also technical and medical supplies. Along with the production of food products, dry animal feed, valuable medical products are produced. The Russian market for meat and meat products is the largest sector of the food market: followed by grain, then dairy.

2. Goal and tasks of the research

Purpose of Work – analyze the meat industry in the Russian Federation, evaluate the Russian meat market, give certain recommendations and strategic directions for the relevant identified problems.

3. Researches and developments review

A study of this topic was carried out in various works, for example, M. Shakleinova The impact of sanctions on the meat and meat products market , which examined the negative consequences of the sanctions introduced against Russia in 2014, as well as in the work of A. B. Lisitsynogo, The state and development prospects of the meat industry of the agro–industrial complex , where he conducted a full review of the meat market. The work of Morozova A.V. The main directions of state support for the meat industry , considered the policy of state support for the meat industry, as well as an analysis of indicators characterizing the domestic support of producers of beef, pork and poultry in Russia.

4. The main results of the research.

The role of the meat market is determined not only by the growing volumes of production, demand and consumption of meat products, but also by their importance as the main source of animal protein in the human diet. The leading position in the Russian meat industry is maintained by pig and poultry farming (fig. 1).

Figure 1 – The structure of meat production in the world and the Russian Federation, 2017 [2])

A feature of Russian poultry farming is that this type of production is of great importance in the economy and guarantees the country’s food security. Modern Russian poultry farming operates according to an intensive system, when meat and egg production in industry is conducted year–round. Egg incubation, nursing of chickens and fattening are carried out throughout the year. As feed, dry compound feed with the content of additives is used for full growth and productivity.

Pig production is also a significant industry for Russian livestock, as its share in the gross livestock product is 40%. The domestic pig industry receives the impetus of development through the state program of support and attraction of investments. Millions of dollars are invested in the industry, since the pig industry is comparable to poultry breeding in terms of return on investment. The cost of meat in the consumer basket remains high, so profitability remains.

In 2012, after the Russian Federation joined the World Trade Organization (WTO), the meat industry felt increased competition, since a decrease in the duty rate on the import of livestock of pigs by eight times (from 40 to 5%) led to a sharp increase in import of livestock and a decrease in prices for livestock in the Russian Federation. There was a need to adapt support measures to work in new conditions.

Already in 2014, the agricultural industry of the Russian Federation (RF) switched to a policy of accelerated import substitution of food products that were previously import–dependent. Further, during the introduction of the Russian food embargo, for 2014 – 2015. In the Russian Federation, the annual production of poultry meat and pork increased significantly (in live weight, for slaughter). So pork in 2014 from 2,974 thousand tons to 3,506 thousand tons in 2017, or 18%, as well as poultry meat over the same period increased by 18%. The production of all types of meat increased by 15% (Table 1). Self-sufficiency for certain types of meat have characteristic differences. So, for chicken meat, self–sufficiency is 111.13%, which means an excess of 11.13%, the figure for pork is – 94.76, and fully consistent with the norm, for beef – 57.33, which indicates a clear deficit and non–compliance with self–sufficiency standards up to 85%.

Table 1 – Meat production by type in slaughter weight of all economic categories in 2008–2017, thousand tons[3]

Among the leading companies engaged in the supply of a product from a manufacturer in the Russian Federation to foreign partners, the leaders are Cherkizovo and Miratorg.

The increase in production primarily affected the weakening price in the domestic market. Also, the pricing environment is influenced by a slight weakening of world prices and the strengthening of the national currency. According to the calculations of the information – analytical agency EMEAT [6],in 2017, pork in the Russian Federation fell in price by 3.1%, and chicken meat & ndash; by 8.8%. Since the saturation of the market with different types of meat and increased competition among producers, who increasingly had to resort to different types of stocks to increase the demand for their products, pushed prices down. The course on import substitution allowed Russian manufacturers to expand their presence on store shelves due to the fact that foreign competitors left the market.

The prices of pork meat in the period from 2014 to 2015 were characterized by a significant increase in prices for feed for pigs. So, prices for pork meat in 2014 increased by 27%. This was largely due to increased demand from the pig industry, increasing livestock numbers (which was caused by a shortage of meat in the market from – due to a fall in its imports during that period). Prices remained at high levels until 2016, but already at the beginning of 2017, they decreased by 3%.

The level and dynamics of prices respectively affects the consumption of meat per capita. The most important target indicator of food security is the level of achievement of rational norms of food consumption per capita. So, with increasing prices for pork, chicken and beef, per capita consumption in 2014 decreased by 2.7 kg, but with a subsequent decrease in prices, consumption increased (fig. 2).

Figure 2 –Estimated consumption of meat of all kinds in Russia per capita, kg [7].

During the analysis, it is necessary to note such problems of the meat industry as a narrow assortment of meat products and low quality of products. The low quality of products of Russian manufacturers is primarily justified by the fact that limited financial capabilities make it necessary to use collagen protein instead of natural meat and add it as a stabilizer. The lack of provision of the meat industry with high–quality domestic raw materials reflects the competitiveness of meat and meat products in general.

The direction of state policy should be to increase the genetic potential of productivity of livestock breeds that are bred in the Russian Federation, based on the use of the best Russian and foreign breeding achievements. Achieving these goals will help to increase the level of scientific support for the industry through the technical re–equipment of its leading industry research centers, stimulate the introduction of innovative developments in the form of the latest production technologies, processing livestock products and safe waste disposal.

State support measures for the industry should support and develop high-tech industries, stimulate the implementation of regional programs and projects that can accelerate the transition of the industry to a qualitatively new technological level, which will allow reaching a new quality of life and compete in the world market of animal products.

In order to increase the competitiveness of meat products, manufacturers face a complex task – competitive, quality meat products. The solution to this problem depends on the level of modernization of technologies for integrated and waste–free processing of raw materials, general automation and mechanization of the agricultural processing industries, the maximum reduction in energy costs, the rational use of raw materials and the competent use of labor resources, for the effectiveness of work with personnel, an increase in labor and production discipline also the possibility of professional growth of employees, which favorably affects the climate in the team and, as a result, increased production labor productivity.

Conclusion

Summarizing the foregoing regarding the prospects for the development of the meat industry in the Russian Federation, it should be noted that started by private capital, with the initiative and support of regional authorities, strengthening state support, a growing trend in the well–being of the population and ensuring accessibility for wider segments of the population, allows developing a specialized meat industry and having a domestic raw material base of high–quality meat products. When writing this essay, the master&rquo;s work is not yet completed. Final completion: June 2020. The full text of the work and materials on the topic can be obtained from the author or his leader after the specified date.

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