The Russian pig sector showed significant growth in numbers in the first quarter of 2020, according to The Russian National Union of Swine Breeders (NSS), continuing the positive trend of 2019.
Russian pig and pork production has increased significantly since the beginning of the year compared to last year, NSS figures show. It is estimated that pig production has increased by at least 7%. Pork production increased by more than 10%.
According to Yuri Kovalev, General Director of the Union, there is currently a large supply of pork on the market, resulting in increasing competition. As a result, wholesale prices have fallen. At the end of the first quarter of 2020, these have fallen by 10% compared to the same period last year.
Falling prices
According to the Russian Ministry of Agriculture, the average price of agricultural producers for pork in slaughter weight on April 6 was 138,42 rubles per kilo, which is 4,5% lower than the previous week. The cost of pork in live weight was 86,13 rubles per kilo, a decrease of 4,3%. There are currently no reasons for an increase in pork prices and the Union expects prices to fall further.
Increasing exports
Market parties are increasing the meat supply for markets in third countries, allowing producers to generate additional income. At the end of last year, pork producers exported 108 thousand tons of meat. The companies in this industry plan to further increase the volume of exports while also continuing to supply the domestic market with quality products.