Hope on easing the Russian import lock

DRV is located at the end of the export stop

The German Raiffeisen Federation (DRV) is optimistic that the Russian import ban for EU pork will be lifted soon.

The background conversations are on a good way. Yet in the current week, more consultations take place.

The main reasons for an opening of Russia's borders are seen on both sides. The EU beckons with the suspension of the WTO procedure against Russia.

Strong supply bottlenecks have occurred in Russia due to the missing imports, which have catapulted the pig prices within one month von €2 / kg almost €3.80 per kg. Currently still €3,20 / kg are announced.

Almost all efforts to import replacement from other countries could offer no significant compensation. In the United States due to the plague of PEDv scarcity and North American prices are high. Brazil has a small export quota with 650,000 t total exports to meet the Russian need for replacement von at least 400,000 tonnes. Brazil can make about 50,000 to 70,000 t loose, but that is a drop in the ocean for Russia.

The attempts to order pork in China, largely failed. Are the Chinese pork prices due to strong production growth at a low level, but it only von temporary duration. The strong sow slaughter will at least contribute at the turn of the year again to shortages in the supply.

Remains the powerful supply of export from the EU.

Pork on the world market is in short supply. The volume of exports from all major exporting countries has fallen. The two largest exporters, US and EU have von about 65% market share.

It remains open whether and to what extent the two latest AFP finds in Poland on 21 and may 30, 2014 deliver a renewed reason to open the borders.

The political tug-of-war over the Ukraine provides also still haunts for dealing.

An extensive or only partial removal of Russian import alert could help out their limited phase pork prices in the EU. Especially the price loads such as decelerating sales von Bacon articles could help a significant boost to the 10 to €15 cent / kg in conjunction with the BBQ season.

However, you should distribute the fur of the bear before its completion. (But please not take literally, so yes no misunderstanding with Russia occur!)

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