Markets

Russian Livestock and Products Annual 2006

By USDA, Foreign Agricultural Service - This article provides the pork industry data from the USDA FAS Livestock and Products Annual 2006 report for Russia. A link to the full report is also provided. The full report includes all the tabular data which we have omitted from this article.

20 September 2006

4 minute read

Report Highlights

Growth in consumer demand for meat products is outpacing production and import growth. The beef sector will continue its decade-long implosion, while the pork sector will experience growth in 2007, albeit lower than in 2005 and 2006. Decreased feed production in 2006 may cause problems for livestock breeding next season.

Executive Summary

Russia meat imports increased 29.5 percent year-on-year in the first half of 2006. From January-June 2006, 510,500 tons of fresh and frozen meat valued at $930 million were imported. Despite rising meat prices, beef production continued its decline and the pork sector grew slower than previously forecast in 2005 and 2006. Even with slower growth in hog breeding in 2005 and 2006, the sector is forecast to expand faster in 2007 as the pig crop rebounds.

The beef industry will continue its decade-long implosion, as investments continue to prove more attractive in other agricultural sectors. Decreased feed production in 2006 may negatively influence livestock breeding in 2007. Although agricultural production and the food processing industry are growing, the growth is less than half of the rate of growth of customer demand, thereby increasing import demand and prices.

Production

The trend continued in 2006 of modest increase in pork production and a significant decline in beef production. The rate of increase of pork production in 2007 is estimated to be slightly higher than in 2006. Processed meat production totaled 1.1 million tons from January-July 2006, up 12.1 percent year-on-year. Sausage production grew 5.6 percent to 1.2 million tons. According to the Russian Ministry of Economy Development and Trade, food processing industry and agricultural production are growing. However, the growth is less than half of the rate of growth of customer demand, thereby increasing import demand and prices.

As of August 1, 2006, there were 22.6 million head of cattle in Russia, a drop of 5.5 percent from the same date in 2005. Cows accounted for 9.5 million head of the total cattle figure, which indicates a decline of 6.4 percent. Pig inventories increased 5 percent to 15.6 million head while sheep and goats increased 3.1 percent 20.7 million head. Poultry held on large farms increased 10.8 percent to 251 million birds.

Small plots accounted for 46.4 percent (46.3 percent at the start of July 2005) of the cattle, 44.7 percent (47.6 percent) of the hogs, and 51.3 percent (53.7 percent) of the sheep and goats. According to the Ministry of Agriculture, total Russian meat production from January- August 1, 2006 was 3.7 million metric tons (mmt) (live weight for slaughter), 3.7 percent higher than for the same period last year. Pork production increased four percent and poultry production jumped 16.3 percent, while beef fell 6.5 percent. Meat and poultry production on large farms increased 8 percent to 2.05 mmt. Pork increased 9.5 percent, poultry expanded 19.3 percent, and beef production fell 7.8 percent.

The Moscow city government has been encouraging local agro-holdings to invest in agricultural production. As a result, Moscow agro-holdings acquired 100 regional plants that according to the city reports helped reduce Moscow’s dependence from outside suppliers by 25 percent. Domestic meat supplies increased 230 percent.