As part of an agricultural session organized by the Russian Agricultural Bank (the Omsk branch of the Bank is the Omsky Biocluster member) in June, the director general of the National Union of Hog Breeders, Yuri Kovalev, focused on the risk of over-saturation of the domestic pork market. "From the moment Russia reached self-sufficiency in the pork market in 2018, the market has changed. Today we see the need to launch a moratorium on new projects in terms of commodity production in certain regions," Yuri Kovalev said.
At the end of 2019, Russia entered the top five pork producing countries. According to the Federal State Statistics Service, Russia with a result of 3,936,000 tons, Russia practically shared the 4th place with Brazil. In 2019, the supply of Russian pork abroad increased by 27% compared to 2018 and amounted to 108,000 tons. In the long run, exports may exceed 400-500,000 tons. Last year, Russian pig products were admitted to the Vietnamese market, however, the largest world market, China, is closed.
Entering the Chinese market can radically change the situation in the industry for the better. Due to the shortage of pork, China will increase its imports of pork products up to 4.5 million tons in 2020 and up to 3-3.5 million tons in 2021-2025. At the same time, Russia is the only country that does not have access to the Chinese market, accounting for almost half of all world exports. Already having experience working with Hong Kong and Vietnam, Russian pig farmers could count on an increase in pork supplies to China up to 300-350,000 tons worth up to $ 1 billion at current prices.
Based on agroxxi.ru.
