According to Mike Lee of Blacksea Crop Forecasts and Green Square Agro Consulting in England, the Russian Ministry of Agriculture said the pig farming sector has been the country’s main driver of meat production.
On December 22, 2023, the Minister reported that over ten months this year, farmers produced 4.6 million tonnes of pigs for slaughter (live weight), which is 6.3 per cent higher than last year.
“However, a quick look at Russian pig production figures will tell you pig meat production has been increasing by six per cent on average year-on-year since 2005, so this latest post from the Minister of Ag might not be the big news they want it to sound like,” said Lee.
Imports of pig meat have been in decline since 2008, encouraged further when Russia introduced their import substitution policy in 2014 in retaliation to sanctions imposed after they annexed Crimea.
From a high of nearly one million tonnes in 2008, annual imports now number around 15 thousand tonnes.
Lee said exports increased from virtually nothing to around 200 thousand tonnes during that time, mainly to the Republic of Belarus, Vietnam, and Kazakhstan.
The Russian Union of Pork Producers chairman, Yuri Kovalev, said that the growth in sales to non-Russian customers could mitigate oversupply on the domestic market.
Russian pig companies have asked Putin to facilitate the opening of the Chinese market, but the African Swine Flu stopped negotiations from progressing. The net balance of pig meat in Russia (domestic production plus imports less exports) is now slightly lower than domestic production as exports exceed imports.
Domestic production has increased by 5.5 per cent year-on-year since 2012, but the net balance of available pig meat has only increased by 2.2 per cent year-on-year.
Pig farming is driving growth in meat production in Russia, with the production of pigs for slaughter increasing by 26.4% over the past five years. This has led to a significant increase in pork exports, with supplies abroad more than tripling over the same period, reaching a record 255 thousand tons in 2023. The largest increase in purchases of Russian pork was seen in Vietnam, followed by Belarus, with further plans to export to China in the future. (as per Specargo)
The owner of Green Square Agro Consulting said tight margins for producers could lead to a contraction in global pork in 2024. According to Rabobank’s annual report, higher production costs will push up animal protein prices.
Even though Russia controls domestic prices, particularly on essential food items, this will likely put additional pressure on Russian pig meat production. •
— By Harry Siemens
