... change ...
Currently, there is a trend of “focus change”: the meat processors are more focused not on the equipment manufacturers from Latin America and Western Europe, but on their competitors from Eastern Europe and Russia. A couple of years ago, the market was dominated by German, Dutch and French manufacturers, as well as dealer companies providing a full range of turn-key equipment. The latter were extremely successful because the manufacturers did not have to invest in the development of their own sales network, and only received their profits. Today, however, the competition and the number of projects in Russia and CIS rose to a critical point. This led to a new trend where not only large companies but also more specialized Eastern European companies began opening their own branch offices and developing their own infrastructure. In general, opening of the branch 46 | MSP Magazine • February/March 2017
offices became possible due to the low exchange rate of the rouble against Euro. Simply said, now it is very profitable to invest. Companies actively invest large amounts of money despite the negative forecasts of well-known analysts and the reports on the investment outflow from Russia. This leads to an increasing number of brands resulting in a growing number of offers in Russian equipment market. At the same time, there is a new global trend on the rise: consolidation of companies in large holding enterprises able to provide the necessary equipment from A to Z. Future belongs to those companies. There were some significant mergers and acquisitions in 2015 and 2016. Those large and powerful companies will be driving slowly but steadily the small manufacturers out, and they will be forced to join the big companies.
Equipment as a Part of the Technological Solution The meat processing equipment market is closely associated with the actual demand for products available in that market. Although Russia has huge territory, the square kilometres do not buy sausages, and the number of consumers is not so big. The villagers and their households should be excluded too, because they live on farming. The remaining demand multiplied by the paying capacity gives us a market comparable with Poland, much smaller than Germany and times smaller than the US. Because sausages and meat are basic foods in Russia and the consumption is generally very high — at the level of European countries and 2-3 times higher than in Asia, the consumption growth which we have seen back in 2010-2012, should have slowed down
Published on Mar 19, 2017