Production volumes of meat and sausage products in Ukraine
Three years ago, all sectors of Ukrainian industry suffered losses. Meat and sausage production was not an exception. According to marketing research of “KOLORO” there are 3 reasons for that:
- decrease in the solvency of the population;
- Russian food embargo;
- low annual quotas for exporting goods to the EU. A duty of 1024 euros must be paid for each ton over the quota.
But, starting from January 2016, the situation is improving – production volumes are growing.
According to the State Statistics Service, in January 2017, 4.3 thousand tons of fresh and chilled cattle meat were produced, which is 44.2% more than in January 2016. Frozen meat production volumes for the same period increased by 41.7% (from 0.7 thousand tons to 1.2 thousand tons).
Pork meat in Ukraine is produced about 6 times more than cattle meat. This industry also shows positive dynamics of increasing production volumes. In January 2016, 17.7 thousand tons of fresh and chilled pork were produced. In January 2017 – 19.1 thousand tons, which is 7.3% more. As for frozen pork, at the beginning of 2016 the volumes reached 1.2 thousand tons, and until May 2017 the production decreased by 16.7% (to 1.0 thousand tons).
Poultry meat is the main Ukrainian meat product. It is produced 15 times more than cattle meat and 4 times more than pork. The production of fresh and chilled poultry meat has increased by 23.2% since January 2016 (from 56.2 thousand tons in January 2016 to 73.2 thousand tons in January 2017). But the production of frozen poultry meat has negative dynamics. In January 2016, Ukrainian industrialists supplied 20 thousand tons to the market, and in January 2017 this number decreased to 17.5 thousand tons, i.e. by 12.5%.
A distinction is made between these types of sausage products:
In January 2016, Ukraine produced 16.7 thousand tons of sausage products. Over the year, we increased this figure to 18.4 thousand tons, i.e. by 10.2%.
It can be concluded that the meat and sausage industry is slowly but surely coming out of the crisis: production volumes are growing. And, as a consequence, consumption of meat products and export volumes are increasing.
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Consumer portrait of meat and sausage products
It is quite difficult to draw up a portrait of a consumer of meat and sausage products, because these are mass consumption goods.
Single men most often buy sausages or ready-to-cook meat in packages of 200-500 grams. Women aged 25 and older tend to buy fresh meat in large packages (from 800 grams).
People with low solvency (students, pensioners, budgetary employees) buy meat and sausage products rarely – 2-3 times a month.
The most popular product among Ukrainians of all ages and social statuses is fresh chicken. It is chosen because of its low calorie content (compared to pork) and reasonable price (compared to beef).
Meat and sausage market: imports
Over the last 6 years, the volume of poultry meat imported from abroad to Ukraine has increased. In 2011, 61096 tons were imported to Ukraine, and in 2016 this figure increased to 83296 tons.
As for cattle meat, pork and sausages – the volume of imported goods decreased by 2,036 tons (58.1%), 8,339 tons (96.7%) and 2,926 tons (88%), respectively, compared to 2011.
Similar trends can be seen in the chart in dollar terms.
Meat and sausage market: exports
Poultry meat is exported abroad the most. In 2016, this indicator reached 240163 tons. That is 79.3% more than in 2011.
Also over 6 years the export volumes of cattle meat have increased: from 12993 tons to 35084 tons (by 37%).
But the volumes of pork and sausage products exported have a negative trend. Since 2011, supplies of pork meat have fallen by 25.3% and sausages by 12.2%.
Chart of exports of meat and sausage products in dollar equivalent.
Main players of the Ukrainian meat market
1. Myronivsky Hliboproduct
Agropromholding includes several producers of meat products: Nasha Ryaba, Foie Gras, Chateau Galicia and Certified Angus.
Photo. Products of Mironovsky Khleboproduct: Foie Gras, Nasha Ryaba and Chateau Galicia
In 2015, Myronivsky Hliboproduct held 40.7% of the meat market in Ukraine. The company also exports products to 65 countries under Qualiko TM.
2. Agromars complex
It sells chicken under the franchise TM “Gavrilivs’ki Kurchata”. Its share in the Ukrainian market is 9.2%. Exports meat to Germany, Holland, Ireland and Iraq.
Photo. Products of TM “Gavrilivs’ki kurchata”
Other important market players are Agro-Oven (brand Zolotko), APK Invest (brand M’yasna Vesna), APGK Dniprovska (brand Znatna Kurka), Volodymyr-Volynska poultry farm (brand Cheboturochka – village chicken), and farm Ular.
Main players of the Ukrainian sausage market
1. Meat factory “Favorit Plus”
The factory produces products under three brands: Sausage Row, Dobrov and Myasnaya Lavka. In 2016, the enterprise owned 14.2% of the sausage products market volume. The production facilities are located in Yubileynoye settlement (Dnepropetrovsk region). Under each brand name, products of different price segments are produced.
Photo. Favorit Plus factory products
2. Globinsky meat processing plant
Production is located in the Poltava region. The meat processing plant is steadily increasing its turnover: in the first half of 2016, production volumes increased by 11% compared to the first half of 2015.
Products: cooked, cooked-smoked, semi-smoked, raw-smoked and raw-dried sausages, sausages, wieners, ham, deli meats, frying sausages, meat bread and pates.
Photo. Products of Globinsky meat processing plant
All labels are designed in red colors. The text logo is placed inside a sunburst pattern. On each sausage the manufacturer reminds that the products meet international standards.
The company also has a premium meat line – raw cured sausages “Italian Traditions”. The white laconic packaging features the flag of Italy.
3. meat processing plant “Yatran”
The enterprise is located in Kirovograd region. The range of sausage products is over 200 items, including: cooked, raw-smoked, cooked-smoked and semi-smoked sausages, sausages, wieners, pate and even dumplings and dumplings.
In 2016, TM Yatran became the winner of the tasting competition World Food Ukraine.
“Yatran” produces two specialized series of products: “Picnic” and “Yatranchik”. The first is an assortment of sausages weighing 410 grams. The second is a series designed specifically for children – the composition is reduced in fat, spices and salt, and the content of soy and coloring agents is completely excluded.
Photo. Yatran meat processing plant products
Also among the main players of the sausage market are: PJSC “Ukrainian Bacon”, PJSC “Kremenchugmyaso”, Saltovsky meat processing plant, meat factory “Alan”.
Meat and sausage market trends in Ukraine
For the last 3 years Ukrainian economy has been experiencing bad times, and meat and sausage production has not become an exception. The prerequisites for the decrease in production are as follows:
- Increase in the cost of raw materials, which entails an increase in the cost of finished products.
- The withdrawal of Crimean enterprises and buyers from the market.
- Temporary downtime of enterprises in Donetsk region.
- Decrease in purchasing power due to inflation.
- Partial transition of enterprises into the shadow economy. Small producers evade taxes by selling their products on the market.
Despite the above factors, entrepreneurs have found a way out by launching production lines for low-cost products and exporting to Asia and Africa.
Since January 2016, the production of poultry and cattle meat has been steadily increasing. In contrast, pork and sausage production has sagged over the past two years.
Let’s look at each industry separately.
Chicken market
Over the last 1.5 years, the volume of chicken production has increased. The main growth is provided by large producers, but there is also a tendency to increase volumes in rural farms. According to the Ukrainian Club of Agrarian Business, in 2016 farmers produced 0.8% more chicken meat than in 2015.
In May 2017, for the first time since the imposition of the Russian embargo, production and export figures matched the pre-crisis 2013 level.
Entrepreneurs managed to get out of the crisis because they started to look for outlets to markets in Asia and Africa in advance.
Ukraine is also interested in exporting chicken to Western Europe, but the quotas of 16,000 tons for chilled meat and 20,000 tons for frozen meat make supplies financially unprofitable – each ton over the quota must be paid extra. Ukrainian entrepreneurs are trying to solve this problem by building their own processing plants in Europe.
Cattle market
Cattle meat production is growing. But export volumes are decreasing. This can be explained by the work of small farms, which provide meat only for the domestic market.
The market has great prospects, as Ukraine can export beef and veal to Middle Eastern countries. This market is 75% dependent on the supply of goods from abroad and is not limited by religious reasons (pork, for example, is unlikely to be popular in the Muslim region). The results of this cooperation will not be known until the end of 2018, as our product first appeared on the Iraqi markets in February 2017.
Pork market
Things are not so rosy on the pork market. Although production volumes have increased by 15% compared to the beginning of 2016, the number of exports is decreasing every year.
The rejection of Ukrainian pork is due to three reasons:
- African plague epidemic, which reduced the number of pigs;
- ban on deliveries to the Russian Federation, which was the main sales market until 2014;
- EU countries have strict quality control standards, which Ukrainian producers cannot yet meet.
The good news is that Ukraine has started exporting pork to the markets of Armenia, Vietnam, Georgia, China and Kazakhstan, but so far the volumes are too small.
Sausage market
In crisis conditions, the population is in no hurry to buy sausages. There is no demand for sausages inside the country, while exports abroad are not yet established. Therefore, producers are suffering losses.
In 2017, the industry leaders started to re-equip their plants. In the future, this will make it possible to produce goods that meet European quality standards and will be suitable for export abroad.
Trends in meat and sausage packaging design
1. Visibility is excellent
The Cleaver brand has simple labeling to help consumers understand what product is on the shelf. The transparent film helps to visually verify the quality of the meat being purchased.
Photo. Cleaver meat brand products
2. Non-standard packaging for a non-standard product
Beyond Meat’s mission is to completely replace animal protein with plant proteins. They produce products that taste indistinguishable from real meat, and the packaging just “screams” about it. The label features a metaphorical collage – the plant-based food is laid out in the shape of a silhouette of a chicken. The front of the package has a window through which you can see the product. The trays that contain the “plant meat” are ideal for recycling and reusability.
Photo. Beyond Meat brand products
3. Graphic elegance
Coco Chanel once said: “Luxury is not in wealth, but in the absence of vulgarity.” Extrem Puro Extremadura, which produces meat products made from Spanish black pig, has developed a concise packaging design. It uses a minimal color palette and a so-called “hierarchy” of printed elements.
Photo. Extrem Puro Extremadura brand products
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4. Pegasus in the product and on the packaging
Ukrainian interior studio Polaris decided to use a sausage as a gift for regular clients. They developed a fabulous packaging design, which absolutely lacks “meat” motifs. This design is great for gift options, but it is unlikely to be chosen for everyday purchases.
Photo. Polaris gift sausage
5. Photo accents
Bright life moments are the basis for the design of the packaging of TM “North-West”. Unlike the previous variant, the packaging has transparent areas that allow the buyer to evaluate the product.
Special text markers like “from St. Petersburg” or even the name “North-West” itself indicate the territoriality of the brand and help customers identify local products on supermarket shelves.
Photo. Products of TM “North-West”
If your special product deserves a special packaging, you can turn to the branding agency “Koloro”. The ideas are ours, the profit is yours.
