Background Pigs
Russian pig sector by leaps and bounds
The pig sector in Russia is developing well this year. Pork production has grown considerably and the export figures are also significantly higher than last year. The country itself has made the switch from large-scale meat imports to exports. What are the further ambitions?
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
Since African swine fever (ASF) entered Russia more than 10 years ago, the country's pig production has stagnated. The pig herd was significantly thinned and Russia had to import large volumes of pork to meet domestic demand.
This year there has been a turnaround, the Russian pig sector has recovered. This recovery obviously did not happen overnight, the country has already managed to double its pig herd over the past 5 years. Domestic pork production this year from January to September amounted to approximately 3,55 million tons, making the production level approximately 12% above last year's level.
From importer to exporter
The recovery of the pig herd has also led to a significant reduction in the need for imports. Over the first few months of the year, pork imports fell by as much as 94%. The country has even become an important exporter instead of an important importer. Pork exports in 2020 will be approximately 143.000 tons, about 80% higher than in the same period last year. Russion Union of Pork Producers (RUPP) predicts that pork exports will surpass 2020 tons by the end of 200.000. This amounts to an increase of 45% on an annual basis.
Pig price
The Russian pork price fluctuates sharply throughout the year. In April, the average pig price was €1,15 per kilo. Local experts at the time expected the price to drop due to increasing supply, but this turned out not to be the case. Due to the corona crisis, the Russian population stayed more inland and the demand for pork increased. The importance of exports also increased and caused the price of pigs to rise.
In July, the price rose to a peak of €1,47 per kilo, before falling again with fluctuations. The current Russian price level is €0,99 per kilo, reaching the lowest level since this year. The price is also approximately 4% below last year's price level.
Ambitions
Russia has managed to build up pig production considerably and growth is not yet over. The Russian Ministry of Agriculture expects domestic production to be at least 2025 tons higher in 760.000. According to the forecast, exports will increase to 2024 tons in 360.000. The outcome of this expectation comes a lot closer with the reaching of new sales markets. Russia can now also export pork to Vietnam, Hong Kong and Mongolia.