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Russia: increased 2014 domestic pork production forecasts

FAS/Moscow has increased 2014 domestic pork production forecast to 2.5 MMT (i.e. 9 percent higher than previous estimates).

Thursday 17 April 2014 (4 years 6 months 27 days ago)
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As the Russian domestic pork industry continues to shift production from private households to agricultural establishments, FAS/Moscow has increased 2014 domestic pork production forecast to 2.5 MMT (i.e. 9 percent higher than previous estimates). Modern integrated agricultural establishments are capable of improving efficiencies to produce more pigs given economies of scale and, in turn, produce more pork to meet the growing consumer demand in Russia.

According to Rosstat data, pork production increased 25 percent at agricultural establishments in 2013. Production levels at these establishments should be even higher in 2014 with an influx of an additional 75 billion rubles (slightly more than $2 billion) in government support payments from the State program for “Pork Production Development in 2013-2015” to, in part, further modernize pork production facilities and subsidize brood stock for breeding, genetic, and hybrid centers (see RS1357). In fact, the National Union of Pork Producers estimates that by 2020, small-scale producers will account for less than 20 percent of Russian pork production, down from more than 70 percent in 2005.

Based on newly available year-end production data, FAS/Moscow has increased pork production for 2013, by nearly 10 percent, to 2.4 MMT. While pork production grew 10 percent in Russia in 2013, production in Russia’s largest producing region, (i.e. the Central Federal District) showed even more dramatic growth (i.e. up nearly 30 percent to 1.6 MMT on a live weight basis). The top three Russian pork producing companies all have production facilities in the Central Federal District: Miratorg, Cherkizovo, and Agro-Belgorye.

Miratorg increased its production by nearly 50 percent in 2013. The company was established in 1995 and has become Russia’s largest pork producer (accounting for nearly 10 percent of all Russian pork production last year). Meanwhile, Cherkizovo, Russia’s largest meat producer (including poultry) surpassed Agro-Belogorye as Russia’s second largest pork producer, increasing its annual production by nearly 40 percent. In addition to these facilities, production growth was realized at many of Russia’s other 15 largest pork producers last year.

March 2014/ FAS - USDA/ United States.
http://gain.fas.usda.gov

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