New solutions for export: the results of the International Exhibition "Meat and Poultry Industry Russia"

New solutions for export: the results of the International Exhibition "Meat and Poultry Industry Russia"

25 July 2019

Source: Asti Group Press Office

On May 28 - 30, Asti Group held at Crocus Expo International Exhibition Center the largest international specialized exhibition "Meat and Poultry Industry Russia" and the summit "Russia’s Agrarian Policy. Today and Future", co-organized by Rosselkhoznadzor (Federal Service for Veterinary and Phytosanitary Surveillance).

Export of agro-business products: Today and Future

The year of 2019 is going in Russia under the auspices of the Federal Program "Export of agro-business products", therefore the summit became the key business event of the program "Russia’s Agrarian Policy. Today and Future". It was opened on May 28 with the opening ceremony of the plenary session "Safety and product quality: production of animal and plant proteins, fodder base".

During the presentation, Daniel Berkovici, President of the International Feed Industry Federation (IFIF), presented an overview of the global fodder market and spoke about the key role of indispensable amino acids in the adequate nutrition of poultry. "The market for the production of amino acids for livestock has grown by more than 5% over the year, the demand amounts already to 600 million tons and continues to grow. The Russian industry has a great resource potential to this respect: there are research laboratories for conceiving innovations, there are all the necessary technologies and competencies for producing amino acids, there is the sector of enzymes and bioindustry. Moreover, manufacturing issues are solved on the level of governmental authorities. All this creates a capacious market that will show an active pace of development in the nearest future," the international expert believes.

Julian Wiseman, professor of animal husbandry at the University of Nottingham (UK), member of the US Soybean Export Council, raised the issue of finding alternative sources of protein for non-ruminant animals and poultry. "In the UK and Western Europe, the use of animal protein in feed stuffs is prohibited. We use fish meal and are constantly looking for options for high-quality plant raw material - the source of protein. We consider and use peas, legumes, also focus on rapeseed, sunflower, use cornstarch. Despite the huge amount of work done towards this direction, today still more than 50% of protein in the European Union is made of soy - this product is not optimal, however; and no ready solutions have been found to improve its quality or use alternatives. This is the number one task for the market," says Julian Wiseman.

The topic of alternative high-quality protein sources was continued by Alexey Gusev, General Director of EuroTechnology LLC. He highlighted the use of peas as a 2019 trend: "Peas have been used as a source of high content protein throughout the world for the past 20 years. The leaders of this branch are Canada, northern USA, Europe (France, Belgium, Norway, Denmark) and China. This approach can significantly reduce the cost of diets for pigs and poultry while maintaining all other indicators at a high level," the expert is sure of.

Virginijus Slausgalvis, Business Development Director for the Baltic and CIS countries in INNOVAD (Belgium), highlighted a resonant topic for the market - the production and use of benign meat and bone meal. He estimated the volume of this market at 300 to 400 tons per month (that is, approximately 0.5 million tons per year), and also spoke about the peculiarities of the production of raw materials in terms of eliminating bacterial and infectious threats, and about the aspects of negative attitude of poultry and pig farms towards meat and bone meal.

Svetlana Barsukova, General Director of Agrosila JSC, presented at the summit the niche of agribusiness manufacturers who produce the final product. She said that today the main competitive advantage of the players in this market is technologization and use of innovations, and also highlighted key areas for such activities: direct supply chain, precision farming, deep processing and "smart" farms. In addition, the following aspects were noted: remote control over the production of works, automation of business processes, lean production, prime cost management, "single window" analysis. In her speech, the speaker drew the attention of the audience to the following factor: "Since 2015, the investments in fixed assets at agricultural enterprises have been steadily falling. The pace of renewal of the technological park is slowing down, which can not but affect the quality of products. The digitization in agro-business is not the ultimate target, but it does provide data for analysis and subsequent use in management decisions. Thus, the digitization affects the final product produced by the company".

In the final part of the session, Alexander Kovalev, R&D Director of Kavikorm Engineering LLC, took the floor. He identified the basic issue of the reduction of the prime cost of pork and poultry: "Today all the main ways in this direction have been used. It is necessary to look for solutions in more local segments, under the conditions of specific companies, specific genetics, and specific feedstuff. The stage of universal approach has passed, it is time to seek for unique options and opportunities. Including by means of exchange of opinions of industry players and the use of international experience".

The second day of the summit was devoted to the issues of national export strategy and the State-to-Business interaction related to exporting agricultural products. The second day plenary session opened with the topic “Export today: Key mistakes made by exporters".

The chief analyst of Cherkizovo Group, Andrei Dalnov, during his speech, outlined the main mistakes and obstacles for the development of exports: a lack of experts, as well as a lack of analytical data and data acquisition systems, introducing the same product for internal and external markets, a lack of understanding of veterinary requirements of importing countries, a lack of and a limited territorial availability of research laboratories to carry out the necessary research.

In addition, the lack of programs and algorithms to finance maritime transport was considered. Currently, the monopoles of foreign companies operate in the ports of the European part of Russia, which hinders the development of export supplies.

Olga Abramova, Minister of Agriculture of the Udmurt Republic, added to the above stop factors the absence of strategy, as well as of targeted market research. Under these conditions, a company effectuates one-time unstructured supplies and does not get the desired result. Other factors are the unavailability of investments in new areas, where the break-even point is postponed by 1-3 years, and contracting only on prepayments to reduce risks, at which a business loses 80% of the market, although it is possible to work with clients in deferred payments, compensating risks by financial instruments.

A large cluster of problems, according to the speaker, is associated with marketing and sales. It's about the lack of properly designed export packaging of goods, commercial offer, selling presentation, low level of the involvement in e-commerce, as well as about the poor quality processing potential contacts, in particular, the inability of Russian manufacturers to negotiate internationally and to structure transactions. All this results in the attempts to reassign the responsibility to distributors who are not always interested in sales.

Aydar Gazizov, representative of "Halal" International Center for standardization and certification, revealed in his speech the potential of exporting Russian meat products to the countries of the Middle East and North Africa using the example of the growth dynamics of the companies certified by the International Center for standardization and certification "Halal". If in 2009 such were only a few dozen, then by the end of 2018 their number has already exceeded 250 and is continuing to grow. The main factors contributing to the development of exports of Halal products were the exclusion of VAT and the favorable currency exchange rate, the high quality of products and a constantly growing sales market.

Artyom Belov, General Director of the National Union of Milk Producers ("Soyuzmoloko"), said that milk is a liquid export commodity. The turnover of its exports today is 600 to 700 thousand tons per year, which amounts to 200 million dollars in currency expression. Priority are supplies to the markets of the CIS countries: Kazakhstan, Belarus, Ukraine. However, about 3% of the manufactured products are exported. There is a great potential for supplying outside the post-Soviet zone, since the cost of milk production in Russia, even with a large investment component, is lower than, for example, in Germany.

Mikhail Mezentsev, CEO of TRAKER, cited the figures of external supplies of wheat, which provide 80% of the total export turnover amounting to 20 billion rubles. "This season, 6.6 million tons were delivered by truck to the grain terminals of the main export port in Novorossiysk from the farms of Rostov Region, Krasnodar Territory and Stavropol Territory, which amounts to 6.5 billion rubles," ​​the speaker said.

The representative of the banking sector, Dmitry Nizhelsky, Head of Sales Department of documentary and international business products of Moscow Credit Bank PLC, shared the results of the governmental subsidies program which was implemented during 2018. "In the scope of this program, exporters received subsidies to finance export supplies. At the same time, the government has provided banks with quite wide functionality: they are not only the agents of support measures, but also provide information support for companies, check projects for compliance with the terms and conditions of the program, analyze the borrower's financial situation, submit requests to the Russian Export Center. This approach gives the exporter the opportunity to receive governmental support in a "single window" mode, in fact.

Discover Russian Cuisine as the promotion of Russian producers through the culture of high gastronomy

A separate platform and stage were set aside for the tasting and demonstration event of Discover Russian Cuisine (DRC), which has already become the traditional format to present Russian products through the skill and talents of the virtuosos of culinary art. This year the event was attended by 40 eminent chefs from Italy, Luxembourg, France, Belgium, Morocco and Russia. They demonstrated their skills in the chef's table format and open master classes.

New Russian cuisine is a popular trend in world gastronomy, which has replaced the Nordic and Asian trends. Using the interest of the global gastronomic industry to domestic products and cooking methods, Asti Group has created an effective tool to promote Russian manufacturers into foreign markets and implemented it in Discover Russian Cuisine format. The event not only presents local companies, but also contributes to the formation of sustainable export demand for products from the Russian Federation. Recently, the DRC tasting and demonstration venue was successfully held in Berlin, Turin, Shanghai and Moscow.

In the framework of the exhibition "Meat and Poultry Industry Russia" Discover Russian Cuisine enables you to get a double business effect: not only to show Russian products from the prospect of high cuisine, but also to create a field for contacts between suppliers and customers, for concluding contracts and to start cooperations.

"The time when it was possible only to sell product has passed, but not every Russian company understand this,” said the head of Asti Group Nariner Bagmanyan. - Today, manufacturers need to go further, offering ideas for using the product, fashionable concepts demanded by the buyers and by the market, attracting the connoisseurs of gastronomy, effectively presenting their products in the format of a tasting and demonstration event, speaking the same language to the end user. In the modern world, cooking and consuming food is becoming more and more like entertainment - this is another form of leisure, recreation and socializing. Understanding this gives manufacturing companies an opportunity to reach a new level of development of their business".

Gastromarket has become an integral part of the Discover Russian Cuisine space where premium quality products of Russian manufacturers were presented: poultry meat, farm cheese, autochthonic wines, herbal teas. At a few master classes, the chefs prepared dishes from dietary turkey meat manufactured by the "Indilite" brand, which was presented at the Gastromarket by Damate Group. PRODO Kaluga Poultry Farm JSC is one of the largest poultry companies in Russia. It manufactures poultry semi-finished products under two well-known brands "Troekurovo" and "Rococo". The "Rococo" brand offered refined products of the highest quality: selected broiler chicken fillet, juicy young tobacco chickens, a wide range of highly processed cuts and a large choice of ready-to-cook products. The products of "Troekurovo" manufactured in an environmentally safe area of ​​the Kaluga region, was used in master classes and gastronomic sets. To raise poultry, the company uses only domestic fodder, without growth hormone and GMO, and modern technologies enable to preserve all the nutritional properties of chicken meat.

The world-renowned chef, Michel Lenz, demonstrated the cheeses produced according to the French technology in Daghestan at "Uchkhoz product" cheese dairy.

The exhibition space of the event occupied an area of ​​over 20,000 sq.m., and gathered under its leadership the companies from such countries as Germany, China, Poland, Belgium and others, 30% of which first came to Russia. In addition to the "newcomers", the exhibition was attended by leading market players, notably Moorgut Kartzfehn (turkey meat), BDW Feedmill Systems GmbH & Co.KG (feedstuff), Eurosilos Sirp (fiberglass bunkers), Victoria (industrial incubators), VALLI (equipment and systems for poultry farming), Jarvis (equipment for slaughter and processing), Hog Slat (equipment for pig and poultry farming), COBB Russia (broiler crosses), Melinvest (processing and storage of grain), ProfKholod (sandwich panels with polyurethane), ROMAX (equipment for elevators) and others.

Following the results of three days, the exhibition and the summit were attended by the representatives of public and commercial organizations, international companies and local manufacturers, distributors and retailers, as well as world-class connoisseurs of gastronomy.

The next international exhibition "Meat and Poultry Industry Russia / Supported by VIV Russia" and the summit "Russia’s Agrarian Policy. Today and Future" will be held in Moscow on May 26-28, 2020.

Press service of Asti Group exhibition company.