Russia Hog Markets

RUSSIA - Russia is experiencing the same high prices for pork as in North America – for some of the same reasons and also for political reasons. This week market prices are at 120 rubles/kg, average weight to market is 110 kg. That is about $1.50 USD per pound, comparatively speaking, writes Susan Wulf, Managing Director, Russia.
calendar icon 1 May 2014
clock icon 4 minute read

African Swine Fever still plagues the region, with new outbreaks along the Eastern European-Russian border, as well as several reported cases of Classical Swine Fever (but found in feral pigs). Both are affecting prices.

Additionally, the border is still closed between the CIS countries and Russia, so no meat, raw or processed is coming into the country. Russia relied heavily on the CIS countries for the trimmings and fat for sausage processing. In the retail markets, there is an approximate increase of 20 per cent currently for all meat protein. Last year a kilo of pork was about 250 rubles/kg; last week it was 300 ru/kg. And, the other genetic companies in the EU can no longer transport their breeding stock into Russia; only option that there is currently is Canada.

PEDv itself in North America has put a shadow on importing animals into Russia. Since the region is already paranoid about ASF and CSF, they surely do not want to have another disease come in surreptitiously and cause more havoc in an already unstable market. Additional testing and biosecurity surveillance has been asked for by companies that are bringing in Genesus genetics.

And who can ignore what is going on in the Ukraine? The Russian government has made it a top priority to increase domestic pork production to ensure food security in Russia. The poultry industry will not be the focus of governmental support or improvement. Current immediate plans are to increase pork production by 30 per cent domestically. This is an escalation of plans to become totally independent of all Western imports into Russia.

Since the beginning of April, Genesus has delivered two plane loads of purebred animals to Russia (1370 animals in total) and have more being sent in the coming months. After our last shipment, Genesus, Ariant Agroholding (purchasers of 7000 animals from Genesus) and the Chelyabinsk government hosted a press conference, discussing and detailing our continued cooperation for the region in the near future. Here is an excerpt from General Director of Ariant, Andrey Aksenov:

“We chose the Canadian company Genesus – recognized the world over by impressive lean meat yield, thin back fat and excellent colour – these traits are the proof quality breeding and high class genetics. Genetics and breeding management are vital for the development of domestic livestock! By obtaining our nucleus stick from the world leader, Genesus, we will dramatically increase the population of our herd, and will after a year have 550,000 animals. By implementing this relationship with Genesus, we will be reaching the world standards for pig production. Statistically, EU and US PSY average is 30 – well above Russian figures. Genesus females should bring 32 or more piglets per sow per year. Outstanding performance – 3.26 thousand pounds of meat from one sow each year.”

And, vice governor of the Chelyabinsk region, Ivan Feklin, went on to say[SW1] :

“After this Canadian-Russian project is completed, our region will reach the planned production capacity level we have set, and Ariant will ensure the pork needs of the Chelyabinsk region by 100 per cent. This means that the south Ural region will become totally independent from all imported meat.”

Feklin added, after being asked how economic sanctions could affect this relationship: “With great satisfaction we can state the fact that the current tension between Russia and the West does not interfere with businessmen and women on both sides of the ocean working together, providing positive actions and putting aside all political hype.”

Genesus anticipates further sales and expansion within Russia – our high standards of genetics, biosecurity as well as customer service is of utmost importance and value to our colleagues in Eastern Europe.

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