Can Russia hold higher pig price?

The Russian pork price has risen to 122,6 rubles ($1,64). This is an increase of 50% compared to the price level at the beginning of 2020. The price increase is due to an increase in Russian pork exports, especially exports to Southeast Asia.

The total export volume is expected to exceed 100 thousand tons this year, and this production comes from 40.000 sows, about 2% of the entire Russian sow herd. However, the Russian pig herd is in an expansion phase, with more than 100.000 sows expected to be added.

Domestic consumption
The Russian government has limited pork exports somewhat in order to increase domestic consumption. According to Simon Grey, general manager at Genesus, the current price increase is also driven by stronger domestic demand. "The corona crisis has also resulted in more Russians staying at home, which has also played a role in increased consumption. In addition, the government has also released a subsidy of 20.000 rubles for each child under the age of 16, which also increases local consumption. and boosted pork prices,” Gray said.

In order to maintain current price levels, it is important that domestic pork consumption does not decline again. The importance of exports will also have to grow further, now that the pig herd is also increasing. Russia is hoping for permission to also export to China, but the lack of an ASF-free status is throwing a spanner in the works.