World meat industry news

By the end of this year, Russia will produce about 4.7 million tons of pork in slaughter weight, compared to 4.5 million tons last year, predicts the National Union of Pig Breeders (NSS). “The pig farming industry steadily increased in production in 2023: the figure for nine months was 6.1% in agricultural organizations and about 4.7% in general. Approximately the same increase should be expected at the end of 12 months - about 6% at enterprises and about 5% in general,” said NSS General Director Yuri Kovalev.

According to him, the increase in volumes is due to the fact that the already launched complexes continue to reach full capacity. The last preferential loans for the development of pig farming were taken at the end of 2018, and now new phases of these projects are being put into operation, the expert explains. In addition, after 2018, investors already took out commercial loans to implement pig-breeding projects; their achievement of production capacity will last until the end of 2025.

“Additional supply is always a challenge and the possibility of price reductions,” emphasizes Kovalev. And producers faced this trend last year - pork production increased by 5.6%, and average prices decreased by 4.5%. In the first half of 2023, this trend continued: with volumes growing by 6%, the cost of pork fell by 4%. “But starting from the second half of this year, there was an explosive increase in demand for this type of meat, which contributed to the fact that prices did not decrease,” says the expert. “Despite the fact that in September production increased by even 8% (compared to the same period a year earlier), demand for pork still outstrips supply.” The main reason for this is the growth of the money supply among the population, according to various estimates, by 40-70% due to support for low-income groups, as well as an increase in wages in all segments of the economy, Kovalev believes. In addition, in the second half of the year, the trend that pork in wholesale became cheaper than poultry meat finally took hold.

According to the NSS, from 2015 to 2022 inclusive, per capita meat consumption increased by 11%, while pork consumption increased by 28% during this period. That is, the growth in pork consumption was almost three times more active. Its share in total consumption increased from 32% to 38%, the expert reports.

According to the forecast of the Agricultural Analytics Center of the Ministry of Agriculture, almost 12 million tons of meat in slaughter weight will be produced in Russia this year, which is 2.1% higher than a year earlier. The country's self-sufficiency in meat products will be 102%.