The cost of pork production in Russia in 2022 will increase by almost 24%
The cost of pork production in the Russian Federation in 2022 may reach 100-105 rubles per kg. This was announced by the General Director of the National Union of Pig Breeders Yuri Kovalev at the industry conference ProMeat Industry 2022 in Belgorod on March 18-th.
According to him, in 2019, the cost of pork production averaged 65 rubles, by the end of 2021 it rose to 85 rubles due to a sharp increase in grain prices. Thus, compared to 2021, it will grow by 23.5%. “We can predict the cost growth quite accurately because we already understand that the exchange rate (dollar - IF) will be at a level of more than 100 rubles.
The second is that the growth of all currency components, from veterinary drugs to feed additives, will also be significant (...) And the fundamental factor is still the price of grain. We proceed from the fact that if the state has already begun to regulate it, then it should continue to keep it at least from sharp surges," Kovalev said.
Kovalev predicted a 5% increase in pork production over the next two years, despite external factors.