Pig prices in Russia may fall below cost of production
Russian pork producers are approaching a situation that has not been on the market since 2010, as the sale price of pigs may fall below production costs.
The reason for this situation is that production continues to increase, domestic consumption is stable, and prices for feed raw materials have increased by 20-25%.
The current selling price of live pigs ranges from 100 to 110 rubles per kilogram ($ 1.36 to $ 1.50), and the average production cost is around 92 rubles ($ 1.26), according to the latest report from Genesus Inc.
While increasing pork exports may be difficult for Russian producers due to concerns about African swine fever, a campaign to promote pork consumption in the domestic market could be key to preventing a disaster in the sector.
"The domestic market is the fastest and easiest market to increase sales. Look at the success of chicken meat, whose sales in Russia have more than tripled," said Simon Gray, General Director of Genesus Inc's Regional Office for Russia, the CIS and Europe.