Marina Demidova: “In 2024, China will be the No. 1 market in Miratorg’s export portfolio by all indicators”

– What role will China play in Miratorg’s export strategy in the medium term?

- Huge. If in 2023 the Chinese market was only one of the top three in the company’s export portfolio in terms of volume, although it was in first place in terms of revenue, now it will be the No. 1 market both in terms of supply and revenue. We are actively investing in promoting our brand in China so that Miratorg is clearly perceived by the Chinese consumer as a sign of quality, naturalness, and taste.

– How is Russian meat positioned in China, and who are the main competitors?

– There are absolutely all suppliers on the huge Chinese market. There is a big competition for beef with Australia, and for pork and chicken with Brazil. World giants export to China; in order to compete with them, it is necessary to produce livestock and meat with characteristics that are in demand not only in Russia, but also on the global market. Therefore, we attach great importance to working with genetics and selection, monitoring the health and welfare of animals. All modern farms are equipped with advanced microclimate and biosafety systems. The company is constantly working to reduce costs. All for the sake of the impeccable quality of our products. I am sure that Chinese consumers will appreciate the taste and quality of Russian pork.

– In Russia, Miratorg actively sells cut and packaged meat. Will the same products be supplied to China , or is it more profitable to send half carcasses?

– Miratorg does not supply half carcasses to any market in the world. We sell exclusively cut and packaged meat to all 40 countries. This is our ongoing brand development strategy. 

The packaging of exported beef cuts bears the Russian Beef brand - a sign that the client is looking at premium Russian marbled beef that has undergone 100% quality control based on the principle of full traceability “from field to counter.” This also means that the cattle grew up on free grazing with lush grass and 250 days of finishing grain feeding, the meat does not contain growth hormones and antibiotics , and the latest processing and packaging technologies are used in meat processing.

– What are the specifics of the Chinese market?

– China has long been one of our top three export markets. Until this year, Russia could only supply poultry and beef to China . Miratorg has been supplying poultry meat since 2018, beef since 2019. Supplies are showing positive dynamics and have excellent prospects for further growth.

Even though the Chinese market is huge, it is quite demanding. The local consumer is knowledgeable about meat, and the country is open to many suppliers. The main feature is the market for high-quality raw materials, and not for finished products and semi-finished products: the Chinese prefer to produce them themselves. All meat products on the shelves of Chinese supermarkets, no matter how “foreign” they are called (for example, the popular “Spanish sausage” in the Middle Kingdom), are produced in China.

Therefore, we are starting to develop the Miratorg brand with joint brands with Chinese partners who are happy to visit our production. Our capacity, modern factories and quality are very impressive. We, in turn, constantly make specifications for a specific Chinese client - a manufacturer and distributor. Our main sales channels are HoReCa, restaurants, steak houses. This is where we now supply not only beef, but also pork.

Our task in developing pork supplies is not only to work with producers, but also to increase our presence in the HoReCa channel and develop the brand on the shelf.

– What pig products were shipped in the first batches?

“In the first shipments, we are trying to bring as wide a range as possible, so that the Chinese market is convinced of the quality and can confidently place large orders. These are both offal - legs, ears, snouts, and various types of cut meat for sale to meat processing plants and retail chains.

– How was the first delivery of pork after the market opened?

- Quite well. From the company's warehouse in the Belgorod region to the port of Nansha, logistics took 31 days. It was multimodal transportation by rail and sea. Clearing customs took no more than a day, there were no problems.

– Which logistics route is preferable when exporting to China?

– We are constantly working to optimize routes. Currently, pork supplies are delivered via a multimodal route (30 days), beef and poultry – by direct rail (14 days).  

– Does Miratorg work with China through a local distributor or through its own representative office?

– Through our own representative office in Shanghai. The company opened it in 2019 after receiving permission to import beef and chicken. Now there are 10 people working there, who are responsible for different product areas. We are trying to interact directly with production, as well as with distributors of the HoReCa channel, and are increasingly engaged in increasing the brand’s share on the shelves of China.

– Is there a threat of oversaturation of the Chinese pork market?

– These risks always exist in any market. At the same time, we understand that the demand for meat in the world is growing. The number of countries capable and able to increase production is limited. Russia definitely has the natural resources, food supply and fresh water reserves to significantly increase meat production .

– Will pork shipments to China affect the price situation on the Russian market? How to balance the development of exports and ensuring domestic price stability?

– Despite the great potential for supplies to China, the Russian market has been and remains a priority for meat producers. Last year we increased pork exports by almost 70%, but the increase in production more than covered the increase in exports. We will continue to increase production volumes; next year we will try to increase the figure by 5% or 250 thousand tons. And it is precisely export opportunities that give us an additional incentive for development.

Although China ranks first in the world in its own pork production, it remains and, due to natural and economic reasons, will remain a major importer. The specifics of consumption in China are such that those parts of the carcass and offal that are in less demand on the Russian market are in demand there. By selling these items in China, our producers will improve their sales margins, which will contribute to more affordable prices for popular cuts within Russia.

In addition, the Chinese side’s requirements for supplied products are very high, and the process of certification of Russian enterprises will be gradual, since not everyone today is ready to fully comply with Chinese standards. So there will be no sharp increase in exports, and there is nothing to be afraid of.