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The retail cost of pork in Russia in 2022 will grow at a rate a fraction of the inflation rate due to the increase in production of this product and the stabilization of the cost structure. Yury Kovalev, director general of the National Union of Pork Producers of Russia, voiced this estimate to TASS.
Kovalev noted that there is now a consistent development of the pork industry in Russia. The industry has been growing at a rate of 5% to 10% a year for the last ten years. Last year there was such growth, but epizootic problems nullified the increase. Kovalev says that now the problems have been overcome and production continues to increase.
In the first six months of 2022, there was a 7% growth in the industrial pork sector. "Given the fact that we are almost 100% self-sufficient, this additional growth naturally pressures the market. Last year, the additional supply was mostly offset by lower imports, increased exports, and increased consumption," said the union head.
This year imports of pork products in Russia will be practically zero. Exports are not expected to increase this year because of last year's growth. Thus, as Kovalev noted, under a favorable and baseline scenario, the additional supply in the pork market will be offset by additional demand.
In his opinion, this will happen due to the increase of state social payments to the unprotected segments of the population. "In this case, wholesale prices for our products - live pigs - will remain at last year's level. This will greatly reduce the pressure on retail prices, which always lag behind the wholesale prices," said Kovalev. He added that stable grain prices due to the effect of grain dampening in Russia contribute to the stabilization of meat prices.
June 21, 2022/ ТАSS/ Russia.
https://tass.ru/
