Russia: Hog Markets27 June 2013
RUSSIA - Since our last report the markets are stronger, especially in the southern regions, writes Paul Flint from Genesus Russia.
There is a wide range of prices throughout the country just based on the sheer size of Russia. There is a $60.00 spread this week on a 100 kilo market pig from the Northeast regions to the south. Converted price per pound US is $1.21. Producers are profitable again.
The recent VIV show in Moscow was not particularly well attended. Interest rates remain high and securing reasonable terms is a challenge. Yet new construction continues throughout the country. Primarily farrow to finish or farrow to feeder pig systems are the most popular. There are very few farrow to wean farms. Wean to finish sites are non - existent. That concept has not caught on yet.
In earlier reports we’ve mentioned the model used by many Russian producers. A niche market where they derive added value from market hogs. The North American term of “farm to fork” applies. People that we met with at VIV were adding 5,500 sows that would produce meat for regional markets. Exhibitors at the show selling packing plant equipment reported good interest. One new Genesus customer is adding over 7,000 sows and building a new packing plant. All production will be sold in retail stores under the company’s brand.
The wheat harvest has begun and yields are quite good. The corn has started to tassle and there is optimism. Second crop corn planted on hay ground 3 weeks ago looks tough and needs rain. Producers are in a position where there should be plenty of feedstuffs. Pressure on prices will result in lower feed costs.
African Swine Fever continues to be an issue. This month four new herd breaks in two regions in western Russia were reported. The herds were small and more family, backyard farms.
To summarize. Lower feed costs, strength in pork prices will continue to drive expansion in Russia. Pork and chicken expansion plans continue but there are very few plans for beef expansion. The goal of eliminating meat imports is still a focus for Russia but reaching that goal will take longer than 2018 as earlier projected.
|Genesus Global Market Report|
Prices for the week of June 17, 2013
(Liveweight a lb)
|USA (Iowa-Minnesota)||1.01 USD/lb carcass||74.74¢|
|Canada (Ontario)||1.95 CAD/kg carcass||67.65¢|
|Mexico (DF)||22.73 MXN/kg liveweight||78.48¢|
|Brazil (South Region)||2.53 BRL/kg liveweight||52.45¢|
|Russia||76 RUB/kg liveweight||$1.05|
|China||13.37 RMB/kg liveweight||98.09¢|
|Spain||1.420 EUR/kg liveweight||83.91¢|
|Viet Nam||41,000 VND/kg liveweight||88.42¢|
|South Korea||4,109 KRW/kg liveweight||$1.62|
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