In the Russian Federation, the overall demand for cheap beef is falling, but it is growing many times in the premium segment

In the Russian Federation, the overall demand for cheap beef is falling, but it is growing many times in the premium segment
Photo is illustrative in nature. From open sources.

According to the Rosselkhozbank, beef consumption in RUSSIA decreased by 3.4% last year, and reached a minimum in the last ten years. At the same time, its expensive types are actively increasing demand.

 

Low-affluence consumers have been saving amid the pandemic's financial turmoil and opting for more affordable protein options like chicken, pork or turkey. This consumer segment, which buys dairy beef, accounts for about 80% of the market.

According to the HEAD of the National MEAT Association Sergey Yushin, the consumption of beef breeds has grown 5 times over seven years, up to 300 thousand tons, premium cuts - 12 times, up to 30 thousand tons. In his opinion, the segment is not yet saturated and will continue to grow.

Metro confirms this trend: demand in their chain for relatively cheap beef has been falling for several years, and sales of the premium line of Black Angus in 2020 increased by a quarter and continue to grow this year.

According to Albert Davleev, President of Agrifood Strategies, beef will become more and more premium type of meat, and the livestock structure will change - the number of dairy cows will decrease due to increased MILK yield, and beef breeds, despite the high price, will grow.

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