Russian pork producers make super profits
The lack of pork in Russia as a result of the import lock has been the producer and consumer prices upward. Russian pork producers, which on the one hand on the other economies in large units, home supply level, make huge profits. 2 large companies numbers are known.
The 4 largest producer with 550,000 pigs per year Rosagro conducts business in the Russian southern province 300 km south of Moscow, close to the Ukrainian border. The most recent annual report shows an increase in sales for the period from July to September by 161% . The average price is calculated to €3.17 per kg, an increase of 27% in this short period of time. The courses just below €2 per kg, which have resulted in considerable losses were still in the Jan 2014.
Also in the southern province of the Sojuz group in the German property has settled. This includes the Hamburg KTG agricultural, the RKS agricultural investment company, and Clemens Tönnies. The company TKS reported that they have generated 2014 as much income in the first half of the year as in the whole year of 2013. Pork prices were increased by 30%.
The company intends its current production of by 800,000 to 1.5 million. Pigs to increase each year no later than 2017. For protection based on feed the grain surface is to be increased to 10,000 soon 60,000 ha. The economic objective is on a turnover of 300 million roubles at a robust two-digit profit rate.
However, the weak ruble makes to create. Important resources imports increase by more than 35%. That could be quickly put into perspective the advantage of high prices. Already next year % is expected due to poor planting conditions with a Russian loss of harvest from 15 to 20. That is expected to drive back the currently low feed costs in the height.
The Russian import lock creates new facts. The Russian domestic production is boosted sharply. Already fallen pork imports by over 1 million tons to 480,000 in the year 2014. 2015 is expected only with pork imports from 375,000. A future opening of Russia's borders - when does not revert back to old import possibilities. Unfavourable prospects for the European pig industry!
