Thought For The Day

Data just released shows that meat consumption in Russia grew by 12.5% up to 63 kilograms per capita in 2008 compared to 2007, according to Viktor Zubkov, the First Deputy Chairman of Russian Government.

Russia imported around 2.75 million tonnes of meat in 2008, almost all of it coming from non-CIS countries, according to data from the Federal Customs Service (FCS).

Russian meat consumption is forecast to continue to grow at a rapid rate. Meanwhile, the country aims to be self sufficient, in the production of pork and poultry within the next five years.

As part of the strive to reach these goals 22 new and 63 reconstructed broiler production facilities as well as 82 new and 80 reconstructed pork production plants were put into operation in 2008.

The Russian livestock sector is still pretty inefficient, in pigs the average feed conversion ratio (FCR - units of feed needed for one additional unit of meat) is around 6, whilst in EU/USA it's close to 3.

So here we have a country who's meat consumption is rising, and who has a game plan to reduce imports and produce more itself (poultry & pork import quotas for 2009 were recently reduced). It also currently has a relatively inefficient livestock sector.

Surely that means that its domestic grain consumption is going to rise rather significantly? And Russian grain production in 2009 and 2010 looks set to fall.

OK, it can westernise it's production methods for both grain and livestock, but that isn't going to happen overnight is it?

Just a thought. These are the things that keep me awake at nights. Well that and Mrs Nogger.