Nippon Meat Packers Australia, one of the country’s leading processors and exporters of premium grain-fed beef, is carving out a juicy portion of Russia’s high-end meat market. The Sydney-based company has been exporting to Russia since the early 1990s, but the past 18 months has focused on increasing sales at the premium end of the market.

“Nippon Meat Packers has been active in Russia for a while, but our decision in February 2006 to focus on the hotel, retail and catering (HoReCa) sector has seen significant growth in a relatively short period,” said Stephen Kelly, the company’s Sales & Marketing Director. “We took part in Australia Week in Moscow 2006 as part of a Queensland Government delegation which included Premier Beattie. This was an ideal platform to expand our contacts and reach in the Russian market.”

The company achieved total sales in Russia in excess of A$23 million in 2008, with a healthy per cent of this value comprised of premium grain-fed products. “That is an important area of growth for the Russian market and part of our strategy to increase sales,” said Mr Kelly.

“Russian consumers are becoming more discerning about the meat they prefer to eat — and they are prepared  to pay for it . Restaurants and hotels in Moscow are particularly attracted to our Australian grain-fed beef products.”

Nippon Meat Packers sells directly into the Russian market through two preferred local distributors. Among its clientele are a number of five-star hotels and the popular Goodman’s Steak House restaurant chain. Mr Kelly also foresees excellent opportunities for expansion in the retail sector, with prices in Russia for Australian beef equal to that paid in other export markets such as Japan and the United States.

“In terms of opportunity, Nippon Meat Packers rates Russia extremely high. It is the number one market for growth potential at the high end and we hope to expand our product range further.”

Mr Kelly dispels any myths about payment risk in Russia. “In our experience, Russians’ way of doing business is relatively straight-forward. After initially requiring upfront payment, we now do most of our business on commercial terms, as our partners have proven to be reliable and trustworthy.”

“Austrade and Meat & Livestock Australia have been very supportive and are helping Australian meat exporters grow the market. Events like Australia Week in Moscow have helped expand the market significantly. We are very optimistic about the future of Australian meat sales in Russia.”

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