Miratorg opens first foreign office in Saudi Arabia

The launch of Miratorg’s first overseas office will contribute to expansion of the company’s operations in Saudi Arabia, as well as across the Muslim world, said Miratorg president Viktor Linnik in a statement posted on the company’s website on 9 July.

The office has been approved by the Saudi Arabian General Investment Authority, which granted the company rights to carry out marketing activities, product promotion and cooperate with local customers, Miratorg revealed in the statement. 

Earlier, Miratorg reported that it was producing beef and poultry in accordance with halal standards. The company produced over 80,000 tonnes (t) of high-quality beef in 2017 and has plans to boost this figure to between 130,000t and 150,000t a year.

Most of the markets where Miratorg has gained export approval for its beef are located in the Middle East and North Africa. These include Bahrain, Qatar, Kuwait, the UAE, Saudi Arabia, Egypt, Iran, Morocco and Lebanon.

The company was also among the top-10 biggest poultry manufacturers in Russia last year. However, Miratorg, has never revealed how much halal meat it is producing or exporting.  

Dmitry Sergeev, official spokesperson for Miratorg, told GlobalMeatNews​ that the company was not providing any additional comments about the venture.

Following the lead​

The overseas office should help Miratorg strengthen its position in Saudi Arabia. This is the route some Brazilian and, more recently, Russian companies have taken to develop the local market, Albert Davleyev, president of Russian consulting agency Agrifood Strategies told GlobalMeatNews.​

“Opening a local office is the most effective way to penetrate the GCC markets and the experience of Brazilian companies is the best example of this. Such a step is not unique to Brazilian suppliers; quite recently, GAP Resource, a major Russian broiler producer and the biggest exporter of broiler meat, also opened a local office in Saudi Arabia,” Davleyev said. 

Miratorg has been exporting some meat products to Saudi Arabia, so consumers in the country are already familiar with the company’s brands.

“The quality of Miratorg’s premium beef cuts has already been recognised by importers, foodservice operators and consumers in the Gulf region. The company and its production facilities have been certified by both veterinary services and halal authorities in the region, so the company’s export potential is tremendous,” said Davleyev.

“However, the major challenge is building a sustainable distribution network, which takes a lot of time and effort. It is a long-term investment, which will take a long time to pay back, but will generate good revenue for the company,” Davleyev added.