15.
02.16
14:54

Russian pork market

Russian pork market - involuntary consumption lead to self-sufficiency

The years of effort of Russia of pork imports to become independent soon becomes a reality.  However, this development in a way that is unusual for Western standards is done.

In the past due to the income steadily increasing consumption growth now goes back to the missing imports. First, the imports from the largest export areas of the world through political actions were motivated. But soon it turns out that the Russian purchasing power as a result of halved energy prices and ruble rates is no longer enough to import pork in significant amounts anywhere in the world.  

The attempt from Brazil – as approved country - pork import failed largely on the question of price.

However, Russia tried almost 10 years to increase the domestic production with government support. In the past, not quite to the production efforts sufficient to keep pace with the growing demand.  In the climax of 2013 rising pork imports amounted to 1 million tonnes, of which approximately 750,000 tons from the EU.

In the last 5 years, an increase of own generation is able to determine about a third. However, consumption declining by missing import is crucial for increasing Russian self-sufficiency in pork.

The Russian pork production should indeed be expanded. But the financial resources are becoming increasingly scarce due to the halved foreign exchange earnings from crude oil and natural gas sales. A continuation of State aid will be no longer as possible without restrictions in the past.

A declining Russian population and a lower income will keep the need for a strong increase in production of pork foreseeable limits. However, will be a manageable number of Russian companies on further growth. A variety of discontinuing backyard attitudes facing the however.

The prospect of an international export business are already targeted, but future plans. Russia is to market remote to get into an international fresh meat business.  Less valuable fatty cuts are hardly to accommodate in the advanced industrial countries. Actually, the focus is now more on sales in the neighboring countries.

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