February 6, 2012

Russia's fish market value may double in five years

Russia's fish product market is expected to double from its current value of RUB480 billion (US$15.9 billion) in the coming five years.

According to Dmitry Denezhkin, the general director of Northwest fishing industry consortium (SZRK), the Russian market of fishery products is now estimated at about RUB480 billion (US$15.9 billion), with 22 kilogrammes of fish per capita consumption and a population of 145 million.

Conventionally, the average price of primary products is RUB100 (US$3.31) per kilo, products with high added value - RUB200 (US$6.61) per kg in total consumption of these foods occupy an approximately equal ratio.

Denezhkin drew attention to the fact that there are a variety of estimates for the fish market. "But a truly reliable market information source does not exist", he added.

According to experts, the growth of market value will occur with an increase in fish consumption, continued food inflation, changes in market structure in favour of products with higher added value, and products of deep processing.

"Most of these processes are already underway. Consumption is growing - five years ago was 13 pounds per capita, now 22 pounds, one can imagine that, 30 pounds is not far off," said Denezhkin, adding that the growth rates of fish consumption is higher than for meat. "Food inflation also exists," continued Denezhkin, noting that experts predict a further rise in food prices in the world.

"In addition, the proportion of urban population is growing," he said, explaining that citizens prefer products with high added value, that is, products that are either ready to eat, or they can be cooked quickly.

Head of Research Center for Information Agency for Fisheries, Timur Mitupov, assessed the capacity of the fish market on the basis of the Russian Federation in 2011 to more than RUB500 billion (US$16.5 billion).

He expects that by 2020 the amount of fish consumption in Russia may reach 26-28 kg per capita. He predicts a 2012 growth rate of retention volume of fish catch at 4%, the growth rate of fish production could increase to 6% versus 3.3% a year earlier.

According to Mitupova, the dynamics of growth in consumption of processed products in recent years greatly exceeds the rate of increase in consumption of fish.