Turkey - an alternative poultry market

The turkey MEAT market in RUSSIA is growing steadily and is one of the fastest growing livestock sectors. By the end of 2023, a production target of 425–430 thousand tons in slaughter weight will be achieved, A. Velmatov, executive DIRECTOR of the National Association of Turkey Producers (NAPI), comments on the situation specifically for IMIT.

For comparison: in 2022, Russian enterprises produced 415 thousand tons of turkey meat, in 2021 - 400 thousand tons, in 2020 - 330 thousand tons, and in 2019 - 276 thousand tons. Turkey accounts for 8% of the total poultry meat production in Russia.

While turkey meat production is declining in many countries, Russia is confidently taking a leading position. Based on the results of 2022, our country took first place in Europe and second in the world in terms of turkey meat production, NAPI notes.

The main producers of turkey meat are large poultry farms: Damate Group of Companies - Penzamolinvest (Penza region), Indyushkin Dvor (Rostov region); GC "Cherkizovo" (Tambov region, Tula region), GC "Ruskom" - "Absolut-Agro" (Tyumen region), "Morozov Poultry Farm" (Omsk region), "SoyuzPromPtitsa" (former BPK named after Gafuri, Bashkiria). At the same time, it should be noted that production is growing in all types of agricultural organizations (medium, small enterprises, private household plots, peasant and farm enterprises), says A. Velmatov.

The largest players in the Russian turkey market are Damate Group of Companies (in 2022, the market share was 52%, 215 thousand tons of meat) and Cherkizovo Group of Companies (market share 19.5%, 80 thousand tons). According to the results of last year, the TOP 5 also included PC "Ural" (22.8 thousand tons), GC "Ruskom" (21.5 thousand tons). The leaders in turkey breeding are the Penza, Rostov and Tambov regions, and the Republic of Bashkortostan.

There is an increase in domestic consumption. Buyers are increasingly choosing dietary turkey meat against the backdrop of the healthy lifestyle trend. Demand for turkey as an alternative to chicken is growing, while more affordable chicken meat is becoming more expensive. Turkey meat is sold in retail chains in the form of easy-to-prepare cuts and chilled semi-finished products. The range of highly processed products is expanding - ham, sausages, sausages , marinades.

Key growth factor

Increasing exports and moving into new markets in Africa, the Middle East and Asia is another leading factor for the development of the sub-industry. Russian manufacturers are investing in freezing and packaging capacity, and since trade is actively developing in the Middle East markets, special attention is being paid to certifying products according to the halal standard.

According to IMIT General Director Lyubov Savkina, in January–October 2023 it was exportedabout 21 thousand tons of turkey products, which is 1% less than in the same period last year. Leading manufacturers reduced supplies for the year by up to 15% in volume terms due to growing demand in the domestic market.

Turkey meat accounts for about 7% of all poultry meat supplies from Russia. The product line mainly includes bone-in turkey parts, wings and drumsticks, with about 16% of supplies being fillets.

EXPORT structure by assortment in January–October 2023 in relation to the same period in 2022

The geography of turkey meat supplies today is quite extensive and includes 34 countries. The majority (about 70% of the total volume) goes to CHINA , Benin and Congo, and the TOP 5 recipient countries account for about 80% of exports in volume terms.

In January–October, there was a significant increase in exports in volume terms to Benin (+717 tons; +14%) and Congo (+568 tons; +75%). At the same time, last year, during the specified period, supplies were not recorded in the following directions: Niger (+55 tons), Kuwait (+54 tons), Maldives (+3.5 tons), IMIT reports.

In value terms, in January–October, the volume of exports of turkey products amounted to 63.8 million usd . By this indicator, turkey meat exports increased by 15% compared to the same period in 2022. 70% of all turkey exports by value come from a few recipient countries, namely China, Benin, Kazakhstan , UAE and Congo. The increase in profit is associated with a change in the range of export items due to an increase in the share of more expensive items (such as fillet).

How prices

have changed “This year, from the beginning of the second half of the year, prices for turkey meat have been growing,” says A. Velmatov, executive director of the National Association of Turkey Producers.

“The increase in prices was influenced by factors such as a general increase in production costs along with high volatility of the ruble, prices for substitute goods ( chicken , pork ), as well as increased domestic demand, including from meat processors.”

According to him, the cost of turkey meat is growing, as there is cost inflation in all areas (increasing costs of feed, energy, biosecurity, labor, logistics and other costs). Thus, compared to 2022, there is an increase in the cost of soybean meal (+31%), hatching eggs (+15%), electricity (+10%), gas (+22%), bioprotection agents (+5%), diesel fuel ( +9%), nominal wages (+16%), the expert emphasizes.

“Of course, prices for turkey meat increased as production costs increased,” notes A. Velmatov. “However, since the average turkey takes 120–140 days to grow, there was a factor of delayed growth. But already since October, prices have stabilized, and then from the second half of November there has been an opposite trend of decreasing prices, mainly for turkey breast fillet and turkey thigh fillet.”

According to Lyubov Savkina, by the end of the first ten days of December, the general level of prices for domestically produced turkey meat increased by 18% since the beginning of the year, and compared to the previous month, prices decreased by 1.5%.

As of December 11, 2023, a turkey carcass was offered for an average of 302.8 rubles. per kilogram (-4% per month; +21% from the beginning of 2023; hereinafter prices include VAT), drumstick - 190 rubles each. (+2.5%; +24%), wing (whole) - 160.2 rubles each, (+10.7%; +3%), thigh - 300.8 rubles each. (-7.7%; +8%). Breast fillet (large) now costs 432.9 rubles. (-8.3% per month; +34% per year), thigh fillet - 471.7 rubles per kilogram (-2.3%; +35%), tail - 120 rubles. per kilogram (+4.3%; +5%), liver - 222.9 rubles. (+12.8%; –4%).

In DOLLAR terms, wholesale prices show a decline (Figure 4). In the 50th week of 2023, the price for a domestically produced turkey carcass fell by 4% over the week and amounted to USD 3.30 per kilogram, and compared to the previous month it decreased by 3.6%. On an annual basis, turkey prices in Russia fell by 17.5%, according to IMIT experts.

Consumers have appreciated the steady trend towards a reduction in the difference in the cost of chicken and turkey meat, which has led to additional demand for turkey, says the executive director of the National Association of Turkey Producers. “However, other factors were more influential in increasing domestic demand for turkey meat. This is the high nutritional and biological value of turkey compared to other types of meat, and its original taste. The cultural aspect is important - turkey meat is allowed in the diet of all religions and can be used instead of pork in the production of highly processed products of the Halal standard. In addition, the use of turkey meat in the diet of organized groups of children and adults has increased,” explains A. Velmatov.

Great opportunity for growth

The turkey sector has great growth potential, industry experts say. The demand for turkey is still far from being saturated; many regions are experiencing a shortage of this type of meat due to a limited number of local producers. By 2030, production of this type of meat may increase to 650–690 thousand tons, NAPI predicts. And if in 2022 turkey consumption in Russia was 2.7 kg per person, then in the future this figure is expected to increase to 5 kg. There are all conditions for this, including government support measures for the development of poultry and turkey farming. Turkey Market

News

Turkey production in the Russian Federation by the end of 2023 may increase by 3–5%

MOSCOW, December 8 /TASS/. Turkey production in Russia by the end of 2023 may increase by 3–5% compared to the previous year and amount to 430 thousand tons. The executive director of the National Association of Turkey Producers, Anatoly Velmatov, spoke about this at the Agroinvestor conference on investments in the agro-industrial complex “Agroholdings of Russia 2023”.
“Based on the results of this year, we predict that our production will further increase by 3–5%, reaching 430 thousand tons,” Velmatov said. As indicated in the presentation presented during the conference, at the end of 2021, turkey production in Russia amounted to 400 thousand tons in slaughter weight, in 2022 - 415 thousand tons.
According to the Association, imports of turkey hatching eggs in 2022 amounted to 29.848 million pieces, for 11 months of 2023 - 22.248 million pieces. The main importing countries for the 11 months of 2023 were CANADA , Hungary, France , Italy , Germany , Slovakia, Great Britain and Spain.

The presentation also reported on the prospects for the development of the industry until 2030, including an increase in the volume of industrial production of turkey meat by 250–300 thousand tons.

Damate is increasing its turkey production capacity by 30%

The press center of the Damate group of companies reports that the leader of domestic turkey farming is investing an additional 12.6 billion rubles in this sector. Due to additional financial injections, the turkey project will be expanded. The annual volume of production in slaughter weight will increase from 155 to 207 thousand tons. The total amount of investment in the Damate turkey production project will reach approximately 74 billion rubles - from the holding’s own funds and attracted loans from Rosselkhozbank. General Director of the Damate group of companies, Rashid Khayrov, noted that there is a steady positive trend in the turkey market. According to Khayrov, positive forecasts are also associated with the development of exports. The volume of supplies to foreign markets may increase by 20 thousand tons per year.

Significant potential lies in the production of highly processed products. “Damate” is moving in line with the trend that is observed in countries with developed consumption, where about 50% of turkey meat entering trade is ham, sausages and semi-finished products. First Deputy Chairman of the Board of Rosselkhozbank Irina Zhachkina said that interest in healthy eating in Russia has grown noticeably and this is helping to strengthen turkey in our diet. Since 2012, its consumption has been growing at an average annual rate of 16%, last year it approached 330 thousand tons (more than two kilograms per person) and has the potential for further increase. The expert believes that growing consumer demand and export opportunities confirm the feasibility of expanding the production capacity of the Damate group of companies. Irina Zhachkina added that the management of Rosselkhozbank sincerely rejoices at the success of a reliable partner: together with him, the financial institution has made a great contribution to the development of domestic turkey farming.

As part of the expansion of production in the Penza region , it is planned to build 128 new poultry houses (32 growing areas and 96 fattening buildings). As a result, their total number will increase to 652. Part of the funds will be used to modernize engineering communications and build new high-tech infrastructure facilities for poultry complexes. One of the priority areas is the reconstruction of the technical factories workshop, where meat and bone meal and technical fat are obtained from waste. In addition, Damate invests in biosafety of production. Two modern automated car washes and two covered disinfection barriers will be built at the incubator sites. When expanding production, it is planned to install four new water intake units, two weighing stations, two hangars and four environmentally friendly manure storage facilities. Work has begun. By the end of 2023, the Damate group of companies intends to increase turkey production capacity to the stated figure of 207 thousand tons. Last year, the holding sold 151 thousand tons of turkey, confirming its status as an industry leader for the third time with a domestic market share of 46%, according to the Agrifood Strategies rating. Year on year, production increased by 15%. 149 thousand tons of turkey meat were produced in the Penza region and 2 thousand tons at enterprises previously owned by Eurodon in the Rostov region.