Lack of competition in Russian meat production sector

Despite rapid growth in the Russian meat processing industry last year, competition in the industry remains extremely low.

According to local industry analysts, Russia's meat processing industry is undergoing a process of consolidation with a few large agricultural holdings are controlling up to 90% of the market.

Lack of proper technical equipment in most of the Russian meat processing plants, especially in those which are located in the vast province, remains another problem which hinders the development of the domestic market.

Most of the processing equipment at these plants have become obsolete, and the companies also face a lack of skilled staff.

Unlike most Western meat product manufacturers, Russian companies still specialise in producing a wide range of meat products instead of targeting niches.

In most cases, it results in the production of low-quality meat products with high production costs.