Pig price in Russia skyhigh by AVP

The pig price in Russia increased by 33 rubles to 116 rubles per kilo (live) since March; or an increase of 40%. Calculated at the current exchange rate, this is a plus of €0,35 to €1,53 per kilo (live). The price increase is mainly a result of AVP, which has been observed in many places. For example, a location of RussianAgro, Russia's third largest integration, was affected.

Meat prices are picking up
Market analyst Anna Kudryakova reports that the price of pork parts has increased by about 20% since March. Kudryakova speaks of extremely high price levels. Every time a mention of AVP pops up, the price responds. Outbreaks are reported especially in summer. Retail has not yet implemented the price increases. According to the market analyst, parts prices are now sometimes more expensive than retail prices.

The question now is how the market will respond. With regard to retail prices, further price increases are in principle not possible. If retail prices rise, demand is likely to decline. Less demand means more supply and that could slow down price increases. However, a further price increase cannot be ruled out if AVP continues to advance. 

Swine fever for 10 years
Russia has been struggling with outbreaks since 2007. The food watchdog Rosselkhoznadzor reported more than 2007 outbreaks in more than 2017 regions between 1.000 and 46. It killed approximately 800.000 pigs, halving the production of 'backyard farms'.

By the professionalization However, on balance, meat production in Russian pig farming increased significantly during that period. In the past 10 years, pork production has doubled to more than 3 million tons in 2018.

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