Russian pig producers still continue to make good profits, Simon Gray, General Manager Russia, CIS and EU, believes. The construction of new pig-breeding facilities is continuing, but it is mainly carried out by ten largest integrators. These are the companies that can get financing for their projects. Russia, being the largest country in the world, has huge tracts of virgin lands that can be used for cultivation of crops and, also, many places suitable for the construction of pig-breeding complexes.
Summer in Russia after the cold winter was hot and arid, as in many regions of the world. Harvest of cereals is lower and, according to some estimates, will be less than the forecast by 15%, which, of course, will affect the prices for feed. Nevertheless, many Russian producers own agricultural lands and themselves grow the crops necessary for the preparation of animal feed. According to Simon Gray, higher prices mean only that that part of the business that is allocated for farming will receive more money than the pig department of the same company.
"The price of slaughter pigs on the Russian market remains stably high, amounting to 123RUR per kilogram ($ 1.77) of live weight, including VAT," the expert said.
Source: agri-news.ru.
