World meat industry news

Following the results of 9 months of this year, the rate of decline in exports of pig products slowed down. This was announced by the General Director of the National Union of Pig Breeders Yuri Kovalev.

“In the first half of the year, exports decreased by 25%. This is an additional 50 thousand tons of products per year, which remained on the Russian market. Based on the results of 9 months, we see that exports are recovering. This is already minus 15%,” said Yuri Kovalev at the KormVet-2022 International Specialized Exhibition of Feed, Feed Additives, Veterinary Medicine and Equipment.

The union believes that by the end of the year, Russian exporters will send about 170 thousand tons of pig products to foreign countries, which is inferior to the level of last year, but not significantly.

The decrease in pork exports in the first half of the year was affected by the changed market conditions associated with higher logistics costs, difficulties in making payments and falling pork prices in Southeast Asia.

“Last year, the countries of Southeast Asia (Vietnam and Hong Kong) formed 50% of our exports. This year, shipments to Hong Kong have almost collapsed. The main reason is the sharp rise in the cost of logistics. Our by-products have become uncompetitive in this market, given the reduction in domestic prices in the first 7–8 months,” Yury Kovalev explained.

A similar situation is observed in the Vietnamese market, supplies to which have decreased by 2 times. Thus, the share of Southeast Asian countries in total pork exports has now decreased from 50 to 30%. However, there is now an upward trend in domestic prices for pork in the countries of the region. Exports to these countries are recovering.

Against the backdrop of declining supplies to the countries of Southeast Asia, there is a twofold increase in exports to the EAEU countries. First of all, to Belarus, which increased its purchases of Russian pork by 2.5 times compared to supplies last year. Deliveries to Kazakhstan increased by 70%. The share of the EAEU countries increased from 20 to 50%.