Russian Q1 pork output exceeds expectations

More than 488.7 thousand tonnes of pork in slaughter weight (666.7 thousand tonnes in live weight) was produced in Russia in the first quarter of 2010, up 10.5% against the same period in 2009.

According to recent data reports, the volume of pork imports as well as live pigs to Russia is steadily decreasing. In March nearly 47,000 pigs were imported to Russia, which is 50% less compared to March 2009.

Russian analysts believe that the growth of pork production could be mainly associated with huge financial support of the state. Elena Tyurina, Director General of the Institute of Agricultural Marketing said that the current credit conditions for the domestic pork business remain good with loan rate no more than 2-4% a year.

In addition, many companies are planning to expand their production volumes. For example, Cherkizovo, one of Russia's poultry and pork producers, this year plans to increase its pork production by more than 30% compared to 2009, while "Miratorg" by almost 70%.

Another reason of ever growing pork production is the consequences of the recession in Russia, which resulted in cheaper labor and construction materials.

However, difficulties in obtaining bank loans are the main problem for Russian pig producers and processors. Despite the fact that the government is ready to take the financial burden on itself, most of the banks remain very cautious.