At the international scientific-practical conference “Pig-breeding-2019”, dedicated to finding answers to the global challenges of the industry, JSC “Agricultural Bank” presented an expert vision of its development points.
According to the Bank's forecast, in 2019, a decrease in prices and an increase in prime cost by 5% will lead to a decrease in the margin of pork production from 35 rubles / kg to 25 rubles / kg. In 2020, the marginality may be reduced even more - up to 20 rubles / kg.
The key reason for reducing the profitability of the industry is a 7% decrease in selling prices for pork caused by a glut in the domestic market. In the medium term, the vertical integration of the leading players in the industry is expected to be completed, since the companies with the highest level of margin are the principle of the entire production chain “from field to counter”. In the long run, financial stability of pork producers will depend on export growth.