CHINA - A recent boost in prices since our last report has renewed optimism. In the south (Krasnodar region) pigs under 110 kilos are paid 85 rubles per kilo, writes Paul Flint from Genesus Russia.
This equates to $2.83 per pound US dollar or $311.66 per market hog. Feed costs remain higher than year to year averages but have recently declined. Profitability per pig remains in the $25.00-$30.00 range. Light pigs, boars and sows brought $1.66 last week.
Ractopomine... there are a number of media covering the story of the banning of US meat to Russia. The local “slant” is quite different than what we read on the internet or hear from our US friends. Clearly the decision made by Russia to put the temporary ban on all meat from the US is not science based. One theory is that now that higher profitability has returned this will drive expansion created by subsidies. The three largest, integrated pork producers in Russia are in expansion mode. Construction of new sow farms continues. By no later than 2020 the goal is to stop importing meat into the country.
An interesting report from a customer. This new farm starting selling market pigs in October and has established some buyers. One tool they use is showing carcasses to perspective packers and order buyers. It’s common and acceptable to invite packers into a cooler and show carcass quality. What started as a limited amount of buyers for their 1,500 pigs per week they have established a waiting list. There is also interest in specialty marketing. Packers and further processing firms are making nearly $100 US per head.
The lifting of the African Swine Fever quarantine in the Krasnodar region remains on schedule. (Geographically think Minnesota and Iowa). Beginning 27 July breeding stock can be sold throughout Russia. Currently animals can only be sold within the region. Last year over 300,000 head were removed due to ASF, primarily backyard and small herds.
With spring there is also renewed optimism that the crops are on pace for good yields. In south Russia, 750 miles south of Moscow the corn, sunflowers and sugar beets are up. Timely rains have the winter wheat crop lush and growing. Spring wheat has been planted too. Wheat is important in feedstuffs for livestock here and prospects are good for high yields.
To find out more about Genesus Genetics, please take the time to visit their website at www.genesus.com .