Russian pig farming: results, forecasts and trends

General DIRECTOR of the National Union of Pig Breeders Yuri Kovalev analyzed the pork market and spoke about forecasts for its development. During the first half of 2023, there was an increase in production by 5.9%, the average price of pork decreased by 4% and is one of the most affordable in the world, which does not allow imported products to enter the market. There is nowhere to reduce imports - there is practically none. Exports began to actively recover in 2023: in the first half of the year, about 135 thousand tons of pig products were sold and this figure will exceed 200 thousand. Thus, supplies to Vietnam almost doubled , reaching the level of 20-21; Belarus remains the key direction . Based on the results of 20-22, RUSSIA was in 8-9 place in the ranking of world exporters. In order to reach the TOP-5 level, exports are required to at least double to 400 thousand tons. Opening new markets will help achieve this goal.

Executive Director of the VIC Group of Companies Sergei Kasparyants spoke about the challenges and solutions in the era of global changes. According to the expert, two important processes are currently taking place in the veterinary industry: domestic manufacturers are building new production sites and technology transfer is underway. Foreign partners understand that in the current geopolitics it is necessary to look for opportunities for development in a new way; companies are actively working to find opportunities to transfer technologies to the Russian Federation. Technology transfer will lead to the emergence of additional scientific activity, knowledge, and know-how on the territory of our country. It is expected that in 3-5 years the market will change dramatically and import dependence will be reduced to a minimum, which will give a huge impetus to EXPORT projects of domestic veterinary companies. In addition, the growth of domestic production will have a positive impact on production costs, which will reduce the costs of agricultural producers.

According to Sergei Kasparyants, the main long-term trend in pig farming is the development of digitalization. First of all, this will affect the area of ​​diagnostics, which is currently receiving unreasonably little attention. In the next five years, the pace of development will increase 10 times, which will lead to a reduction in veterinary costs: having a large array of data that is analyzed and clearly processed, it is possible to make diagnoses more accurately. However, in this regard, the costs of hygiene and disinfection will at least double.

Director of the pig breeding division of the VIC Group of Companies, Alexander Klyandin, oriented the audience on trends and approaches to veterinary medicine that will be relevant in 2024. The first important point is globalization and consolidation: around the world - and in the usa, and in CHINA - large companies occupy most of the pork market. In Russia, 76% is covered by the TOP 20 manufacturers, and the situation will continue to develop in this vein. The expert also spoke about the need to focus on diagnostics, which makes it possible to control the quality of purchased veterinary drugs, prevent the spread of infectious diseases, and timely and effectively change veterinary treatment regimens.

Director of the EEC Department of Agricultural Policy Armen Harutyunyan presented an analysis of the EAEU pork market . According to the expert, over the past 5 years, Russia has increased production volumes by 16%, pork exports by almost 3 times, while in other countries of the Union a serious decrease in this indicator is felt. For example, in Kyrgyzstan the decline in pork production is 36%. In this regard, the main task of the EEC is to ensure food security, which is implemented by the development of several key areas:
• Education, training in the agricultural sector - an academic mobility project has been launched, which includes the exchange of information between specialized universities of the EAEU and interaction between countries.
• Logistics optimization – commodity distribution networks are being created, existing supply chains are being analyzed, digital infrastructure is being created between countries, green corridors are being organized, optimal routes are being built and improved.
• Support for producers - preferential financing of projects that are of a cooperative or integration nature is organized.

Director of Supply Chain Management of the VIC Group Grigory Grigoryuk spoke about the transformation of logistics chains. Changes in the legislation of the Russian Federation regarding veterinary drugs, which came into force on September 1, will seriously affect the Russian market. According to the expert, at the beginning of 2024 there will be a rebalancing of supply and demand: the range of manufacturers will be reduced and, most likely, there will be a shortage of some products. This will happen not due to the inability to reproduce the required volumes, but due to the fact that preliminary work was not carried out with manufacturers. A second rebalancing will occur after the second quarter of 2024: then changes in the legislation on the introduction of veterinary drugs into civil circulation will enter the EAEU. In order not to suffer from the impending changes, it is necessary to increase the planning horizon of all activities by 2 times (from 4 to 8 months).

Director of the GENESUS Life Science company Natalya Zarubina reviewed modern trends in genetics. For example, the expert pointed out that in terms of the “taste quality of pork” indicator, difficulties arise: between the concepts of leanness and tasteless MEATYou can leave the equal sign. This is the reason why pork consumption is not growing as rapidly as we would like. The company conducted research to understand consumer preferences for pork. About 300 people of different ages took part in the survey. People rated the quality of pork four out of five, noting the dryness and tastelessness of the meat among the negative factors. According to the expert, this state of affairs is influenced by the imperfection of existing GOSTs and the need to revise the categorization parameters. In addition, people still have a fairly strong prejudice that meat contains a large amount of hormones and antibiotics . To solve this problem, a major information campaign is needed to change public opinion regarding pork.

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The Agricultural Industry Leaders project is a discussion platform for managers and chief specialists of agricultural enterprises, created to discuss current business issues, exchange experiences and develop comprehensive development solutions in the agricultural sector.
“Leaders of the agro-industrial complex. Results of the year" included two conferences in the areas of pig farming and poultry farming. The main questions concerned current trends and innovative solutions for animal protein producers in order to increase the economic efficiency of their business.
The events were attended by over 150 managers of the largest poultry farms and pig breeding complexes in Russia and Belarus, leading manufacturers of premixes, feed additives, agricultural equipment and veterinary drugs.