Convenience foods production is growing
— 2005-07-25 —

In the first six months of 2005, production of convenience meat food products grew in Russia by 20% and nearly doubled in the Moscow region and Belgorod region. Whereas in these areas production, the number of sausages started to drop. Experts believe this situation was caused by the 100% growth of prices for raw meat as seen in the last two years that the production of pelmenis or ready-made chilled products containing meat can be replaced with cheaper supplements.

The Russian Meat Union estimated that the meat market’s volume is 8 million tons a year (equivalent of $16 billion). Sausages (including products such as hot dogs and wieners) make up $5.5 billion,  and meat convenience foods of all types (pelmenis, ready-made courses, chilled meat products etc) made up to $1.5–2 billion of the market. Convenience foods production in Kaliningrad has grown by 43%. 

In the last six months, 57,000 tons of convenience foods were manufactured in Moscow region and 51,000 tons were manufactured in Kaliningrad. Mr. Mamikonian believes that Produkty Pitania, based out of Kaliningrad, is the major player in the meat convenience foods market in Russia, as compared to Moscow-based Ostankinsky meat-packing plant, who is the region’s most most dynamic sausage maker.

Produkty Pitania Vice-President Tea Grgurich says “In the first six months of 2005, the company boosted production of convenience chicken foods by 40%”.

Speaking of market growth prospects Grguric refers to Europe as an example, saying that meat convenience foods consumption in Europe is 35-40 kg per capita per year, whereas the same figures for Russia are much lower at 8-9 kg. Mrs. Grguric says there are a lot of reasons for being optimistic about prospective growth including the growing standard of living, the development of fast food, and the rapid development of food service sectors and regional retailers. She states that we should also take into account that people’s living rate is growing faster and convenience foods are becoming essential as they are faster and easier to cook.

Rinat Sagdiev