Miratorg targets $1bn worth of meat exports

By Vladislav Vorotnikov

- Last updated on GMT

Miratorg has big expansion plans for its export division
Miratorg has big expansion plans for its export division

Related tags: International trade, Beef

Russian meat giant Miratorg wants to increase the volume of its meat exports to 250,000 tonnes in the next five years to a value of $1bn, according to CEO Viktor Linnik. 

“We have set ourselves a target of three to five years to start exporting 25% of all production in one form or another. In three years, volume of Miratorg’s production should exceed more than a million tonnes of meat, so we plan it [export] to be close to 250,000t; [in monetary terms] about $1bn per year – this is our goal,”​ Linnik said.

In 2015, the company’s agricultural holding produced 479,000t of meat, supplying only a small amount for export. However, last year the company delivered its first shipment of beef to Gulf countries. It also achieved progress on chicken exports to Europe, in particular to Serbia and Italy.

No benefits from WTO

Linnik noted that at the moment Miratorg is working on opening up exports to Japan, South Korea, China, Vietnam and other countries, complaining that Russian meat companies so far don’t feel any advantages of Russian membership of the World Trade Organisation (WTO).

“We have opened our [Russian] market, fixed the amount of quotas but, unfortunately, so far have not been allowed anywhere. However, top officials in the country have managed this issue and I am sure that in the coming year some markets will be opened for Russian meat,”​ Linnik suggested.

Online export to China

At the beginning of this year, Miratorg was the first Russian meat company to be allowed to export beef to Iran. Furthermore, head of the Russian Export Center (REC) Petr Fradkov said, the company may soon be allowed to export to an even bigger market. If China lifts its ban on imports from Russia, Miratorg may establish exports of meat there..

Speaking at the World Economic Forum on 3 September, Fradkov also disclosed that the REC has negotiated with Miratorg on the possibility of it selling premium beef to China via online. Despite the fact that before now Russian companies have not exported meat this way, Fradkov stated this was “a working scheme and it was quite possible to establish it”​.

Halal as separate direction

In addition, during 2016 Miratorg made good progress in terms of export of halal products. According to company representatives, the Kaliningarad-based Miratorg-West section of the company is certified in accordance with halal standards and, in 2016, it established exports to UAE, Egypt and Morocco.

The company has not so far disclosed amounts and value of the first supplies of halal production, saying only that Miratorg-West is able to offer customers in the Middle East products that are competitive on price, so they should be in good demand in the region.

Related topics: Meat

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