January 5, 2016

Russia on road to self-sufficiency in pork

Russia is poised to become a pork exporter as production has swelled 26% in the last four years and pork imports have decreased by over 80% from their peak in 2012, Bloomberg reported, citing US Department of Agriculture data.

The government stepped up support for agriculture after it banned some food imports from the US, the European Union and other countries, which had imposed trade sanctions over Russia's involvement in the Ukraine conflict.

Pork production is expected to further increase, by 5.7%, to a record 2.78 million metric tonnes in 2016, possibly sending Russia down to ninth place on the list of the world's top pork importers from seventh in 2015, according to USDA.

The USDA said pork imports would continue to tumble, down to 200,000 tonnes this year from 300,000 tons in 2015 and 1.08 million in 2012.

By 2020, Russia is seen to export 10,000 tonnes of pork, or 2,400% more than in 2014, and 30,000 tonnes of pork products, according to Daniil Khotko, an analyst at the Moscow-based Institpork byproductsute for Agricultural Market Studies.

Reduced domestic demand was also a factor in the decrease in pork imports. USDA data showed that consumption fell to 2.93 million tonnes in 2015 amid an economic slump from 3.24 million tonnes in 2012.

Vladimir Labinov, head of the Agriculture Ministry's livestock department, expressed confidence that Russia would produce enough pork within the next two years to meet domestic demand.