Pork production increased by 5% in 2022

Kovalev also said that it was not possible to increase pork exports in 2022. In those countries that are already open for EXPORT, RUSSIA occupies a dominant position and it is impossible to increase the volume of export there. Therefore, an additional volume of 200 thousand tons put pressure on domestic prices. “We feared that they would drop by 10-15%, which would incur huge risks for the economy of enterprises. At the same time, the cost price continued to grow and increased by 15-20% in the first half of the year,” the expert noted.

However, in the second half of the year, the situation began to improve, supply chains were restored, and the biggest support came from a huge grain harvest, which reached 150 million tons, Kovalev continued. This led to a drop in prices for cereals, which are the basis of production costs. As a result, according to the expert, the cost of production began to decline, which supported the marginality in the industry, and the expected decline in prices by 10-15% did not happen - they decreased only by 5-7%. According to Kovalev, this happened only due to a record increase in pork consumption of 6%. The program of state assistance to needy segments of the population also played a significant role here.

According to Rosstat, retail prices for pork in Russia fell by 0.5% in January compared to December, and by 1% compared to the same month a year earlier. A gradual decrease in the average consumer price has been observed since April 2022, follows from the message of the department. In January, the weighted average consumer price of bone-in pork was 306.43 rubles/kg. The most expensive - 370.79 rubles / kg - pork (excluding boneless MEAT) cost in the Far Eastern Federal District, and this type of meat was the cheapest in the Volga Federal District - 278.76 rubles / kg.

In December, at the Agroholdings of Russia 2022 conference organized by Agroinvestor, Kovalev stated that in the next three years, pork production in agricultural organizations could increase to 6 million tons. At the same time, the top 20 market players by 2025 will increase annual production output by 25%. Their total increase during this time will reach 1 million tons. Taking into account the decline in production in other categories of farms and losses from veterinary problems by 230 thousand tons, over the same period, the total production in agricultural organizations will increase by 775 thousand tons (+ 14%).