October 15, 2012

Russia's live pig price down 15% on lower customs duties

Due to lower customs duties for imported pigs introduced after Russia's accession to the World Trade Organisation, live pig price has declined by 15% since September.

This was according to RBC Daily's report on Friday (Oct 12), quoting National Swine Breeders Union Chairman Yuri Kovalyov.

"We expected a tough situation, but it is developing faster than we foresaw," Kovalyov said.

He said that there has always been a seasonal price decrease of no more than 5-7%, but in accordance with WTO rules import, duties for live pigs was cut to 5% from 40% and the duty for pork imported under quotas fell to zero from 15%.

National Meat Association CEO Sergei Yushin said that foreign companies have partially suspended supplies pending lower duties, and now there is a meat import boom.

Kovalyov said that he had hoped for government subsidies and grain interventions.

Gazprombank analyst Darya Snitko said that the global market soon expects a rise in the price for pigs, resulting from a higher cost of breeding, and Russian prices are likely to follow the lead.