INTRODUCTION
Duck meat refers to the so-called non-traditional types of poultry meat, which also includes turkey, goose and guinea fowl meat. On the Russian market, it is much less common than chicken and is considered a niche product. The market capacity is estimated by experts at 1-3% of the total poultry meat production. At the same time, in the USSR the share of duck meat in production reached 15%.
The domestic duck meat market is at the initial filling stage. Competition in this industry is minimal today. Most poultry farms engaged in waterfowl breed it as an addition to chickens and broilers to expand the range. Duck meat is poorly represented in ordinary stores. Usually it is found either in high-price retail outlets or in the menu of expensive restaurants.
The reasons for this situation are that duck is both a complex and risky product for industrial production. There is no corresponding genetic base in the country, no specialists, no stable demand. The threshold for entering a business is very high. For a factory producing 1 thousand tons of products, it is necessary to spend about 130-140 million rubles. In this regard, there are not many willing people to take risks - investors prefer to invest in proven production facilities.
Until recently, products imported from abroad prevailed on the Russian market, but in recent years the situation has begun to change. Large-scale production began to open in the country, the level of consumption increased, and the process of import substitution began. Today, according to expert estimates, imported products provide up to 10% of consumption.
Gradually began to expand the range of products offered. In addition to carcass parts, duck semi-finished products and kebabs, boiled, baked and smoked duck, products in marinades (with wine, honey, fruits and berries) appear.
DUCK MEAT OFFER
About 80% of world production is concentrated in Asian countries. The world's largest producer of duck meat is China, which produces more than 2.9 million tons of duck meat per year. This is 10.5 times more than France produces annually, the second largest country in terms of duck meat production in the world. According to experts from the United States, annually world duck production adds 4-5%. FAO data indicate that now the volume of all manufactured products in the world is approaching 4.5 million tons.
Figure 1. Duck meat production in the countries of the world, 2013, thousand tons.
Source: FAO
According to the Ministry of Agriculture, duck production in Russia in 2015 amounted to 124 thousand tons, up 12.7% from the previous year. At the same time, the share of industrial production is 29%, the rest is small farms, private and subsidiary farms. The most common breed of ducks in Russia at present is the Peking and its hybrids. In Soviet times, it accounted for over 90% of the duck population of collective farms and state farms.
According to BusinessStat estimates, duck meat production at poultry enterprises in Russia amounted to 40.5 thousand tons. Relative to 2011, production grew 13.5 times. The main reason for the increase in production is called the increase in the production of duck meat by Donstar LLC from the Rostov Region.
Figure 2. Duck meat production at Russian poultry enterprises, 2010-2015, thousand tons
Source: BusinessStat Data
Another indicator is growing dynamically - the supply of duck meat. It represents the volume of duck meat offered for sale in the country. In addition to products produced during the year, it includes stocks of duck meat at the beginning of the year and the volume of imports for the year.
Figure 3. Supply of duck meat in Russia, 2011-2015, thousand tons.
Source: BusinessStat
Relative to 2011, the supply of duck meat in the Russian market grew by 3.6 times - from 13.2 to 47 thousand tons. The largest increase in the indicator was observed in 2014, which, again, is associated with a significant increase in production by Donstar.
The cost of growing ducks at 60-75% is compound feed, the rest of the cost is paid to employees, maintenance of production and other expenses. Duck usually requires longer feeding than chicken. If the latter requires up to 42 days, then the first - 50 days. The musky duck is fattened for 80 days. Since the thoughtless cost reduction for this item negatively affects the meat characteristics, the most optimal option is to create your own compound feed workshop at the poultry farm. This step allows you to reduce about 4-5% of the cost.
Figure 4. Cost of production of duck meat
DUCK MEAT PRODUCERS
The largest producer of duck meat in Russia is the company “Donstar” (trademark “Utolin”) from the Rostov region, which is part of the Eurodon group. In 2014, the output of this company amounted to 17.6 thousand tons, in 2015-2016. indicators increased to 24.2-26 thousand tons. The company plans to reach a production capacity of 70 thousand tons of products per year. The assortment of the brand "Utolina" includes more than 100 items. About 10% are products of deep processing.
Other major producers of ducks are: Ramaevskoye farm from Tatarstan (production volumes - about 2.2 thousand tons), Altai company Chicken-Duck (1.9 thousand tons), Gayskaya poultry farm from the Orenburg region ( 1.7 thousand tons).
In 2015, the second largest industrial production in the country was opened in the Chelyabinsk region - Duck farms LLC (Utkino trademark). The design capacity, which the company planned to reach by the end of 2016, is 6.5 thousand tons of meat in live weight or 4.5 tons of finished products. In 2017, the company plans to launch the second phase of production, in connection with which the capacity will increase to 12 thousand tons per year.
CONSUMPTION AND SALES OF DUCK MEAT
The leading consumers of duck meat per capita are countries such as China, Myanmar, Taiwan, Bulgaria, Hungary, Malaysia, France, where each inhabitant annually consumes from 2 to 4.5 kg of duck meat, respectively.
Figure 5. Consumption of duck meat in countries of the world per capita, kg
Nevertheless, the situation with the consumption of ducks in recent years has begun to change radically, as evidenced by statistics. So, from 2011 to 2015. The natural sales volume of duck meat grew 3.4 times - from 12.4 to 42.7 thousand tons. This is due to both increased supply (the emergence of large industries) and the development of forms of retail trade, and with a change in consumer preferences. The population is gradually increasing interest in new types of poultry meat, interest in the food culture is growing, a varied and healthy diet is becoming fashionable. In our country, the consumption of duck meat is considered to be very low - less than 50 g per Russians per year. This is despite the fact that in general poultry meat consumption per year per person is now about 32 kg. The greatest demand for ducks arises on New Year's Eve, the rest of the time, consumers tend to give preference to chicken meat - it is cheaper, it is easier and faster to cook. The duck, as already mentioned, is considered popularly considered to be an attribute of the festive table rather than the “daily” one. Most meat is produced and consumed in personal subsidiary and peasant farms. Duck breeding is carried out by rural residents, where the traditions of keeping waterfowl are strong. Accordingly, in these areas there is only a demand for breeding egg and daily young growth, rather than meat.
Figure 6. Sales of duck meat in Russia, 2010-2015, thousand tons
Source: BusinesStat data
Market participants note a high demand for ducks and geese among the Muslim population of the country. Waterfowl, for example, is popular in Tatarstan and Chuvashia, where it is customary to put it on the table for a birthday or New Year. High duck consumption in the Orenburg region. From fatty duck meat they like to cook their traditional dish - Bishbarmak - Kazakhs, who live a lot in the region.
In large cities of the country, such as Moscow and St. Petersburg, along with an increase in the demand for duck meat, the consumption of duck liver - foie gras is growing. Foie gras is considered an expensive delicacy and is almost completely imported to Russia from Belgium and France (89% of imports).
IMPORT OF DUCK MEAT
Deliveries of non-traditional types of duck meat in Russia are traditionally at low levels relative to chicken meat. According to the experts of AB Center, in 2014 the share of imports of duck, goose and guinea fowl was only 0.8% of imports, and the volume of deliveries in kind amounted to 3.7 thousand tons. The highest indicator since 2001 was recorded in 2010, when 8.2 thousand tons of meat were imported into Russia, the lowest - in 2001 - 1.9 thousand tons.
Figure 7. Import of duck, goose and guinea fowl meat to Russia, 2001-2015 (o), thousand tons
Source: “AB-Center”
Before Russia introduced the food embargo in 2014, European countries were the key importers of duck meat to Russia. Mostly, duck meat was supplied by foreign companies on the eve of the holidays - in the wake of New Year’s demand. More than 74% of the total import of duck meat came from Hungary, Germany and France. Since 2014, 90% of products began to be delivered from Belarus. Due to the embargo and the emergence of new domestic market players, Russia has seen a serious trend of import substitution for these products. According to expert estimates, in 2015, imported products provided up to 10% of consumption.
EXPORT OF DUCK MEAT
Since 2011, the volume of duck meat export from Russia in monetary terms has grown 3.5 times (from 245.5 thousand dollars to 857.5 thousand dollars). The increase in the indicator is associated with an active increase in natural supplies, which has been observed in recent years. The largest increase compared to the previous year was recorded in 2014 - export revenue increased immediately by 70.9%.
Figure 8. Export of duck meat from Russia, 2011-2015, thousand dollars
Source: FCS, EurAsEC Customs Union, BusinesStat
According to the results of 2015, Kazakhstan ranks first in countries of destination in the value of exports. It accounts for 561.1 thousand dollars or more than 65% of export revenue. The second and third places are followed by Hong Kong and Ukraine with shares of 14.4% and 8.4% respectively. Analysts consider Africa and East Asia, especially the Chinese market, which has a huge demand for duck meat and offal, to be the most promising regions for export.
Figure 9. Export of duck meat from Russia by country of destination, 2011-2015, thousand dollars
Source: FCS, EurAsEC Customs Union, BusinesStat
According to the types of exported meat, in 2015, frozen meat prevailed - 74.6% of the cost volume, the share of chilled meat was 25.4%. In 2011, the opposite picture was observed. Then chilled meat had a share of 80.5%, frozen - 19.5%, respectively. For this period, exporters of chilled duck meat were exclusively Belarus and Kazakhstan, while frozen meat was supplied to 7 countries of the world.
Figure 10. Export of duck meat from Russia by type, 2011-2015, thousand dollars
Source: FCS, EurAsEC Customs Union, BusinesStat
PERSPECTIVES OF THE INDUSTRY
Industry experts generally give positive forecasts regarding the prospects for the development of the duck meat market, despite the fact that this area is considered to be a niche in Russia. According to their estimates, the meat market can grow 3-4 times. In many ways, such a forecast is connected with the plans of manufacturers to expand their production. For example, the industry leader, Donstar, intends to increase production capacity to 70 thousand per year, making it the largest duck meat producer in Europe.
According to BusinessStat forecasts, until 2020, the Russian market will reach 87.8 thousand tons, and the natural sales of duck meat will amount to 80.8 thousand tons, which will exceed the level of 2015 by 89.3%. The market growth will be associated with the growing interest of the population of the Russian Federation in non-traditional types of meat, as the traditional chicken meat market has almost reached its saturation. Another powerful driver of growth will be the overcoming of crisis phenomena in the economy and the growth of disposable incomes of the population.
In connection with the revival of the industrial production of ducks, in the coming years it is expected to expand the assortment of meat and the appearance on the shelves of products of its deep processing. According to surveys, about 15% of consumers will be ready to change their consumer habits and switch, for example, from broiler to duck, if they are offered tasty and easy-to-cook meat, in various cutting and packaging. Global Reach Consulting predicts an increase in the non-traditional poultry sector to 10% by 2020.
One of the promising areas of domestic producers consider the export of offal to neighboring countries and, in particular, to China. In China, duck legs, heads and tongues are considered a delicacy, in Russia, on the contrary, because of scanty demand, these products are thrown away or processed for livestock feed. In 2016, the manufacturer of duck “Donstar” agreed on the supply of duck paws and reeds to China. The volume of deliveries of offal will be from 10 to 30 tons per month.
Nevertheless, for the sustainable development of the industry it is necessary to solve a number of problems. The primary task for the Russian market is its own genetic base and breeding, the creation of ancestral herds and the development of the scientific component. Currently, without all this, domestic companies are dependent on foreign manufacturers.
Another equally important task is the formation of demand for products among the population. The Russians are not used to consuming duck meat in large quantities, and therefore producers should actively invest in the promotion of their goods. Moreover, one-time promotions here are not so effective - large-scale marketing moves and programs are needed, as well as constant feedback from the consumer.
Mikhail Semynin
(c) www.clogicsecure.com - a portal to small business business plans and guides
08/18/2019