Genesus Global Market Report - Russia

 

Simon Grey, General Manager Russia, CIS and Europe, Genesus Inc.

June 6, 2019

Pig price is Russia is 103 Roubles per live kg ($1.58). Half carcass price is 151 Roubles per kg ($2.32). In Russia carcass is head off, so killing out % in the 74% region. This means slaughter plants selling Ĺ carcass have a 1092 margin ($16.78) over live pig purchase price. Russian pig industry continues to be very profitable.

ASF and Russia

At this point there is no sign of increased price due to situation in China. As Russia is a country with ASF, China will not buy pigmeat from Russia. Not all of Russia has had ASF. Russia as a country nearly 4 times larger in land area than the entire EU. In Europe it is only countries that have ASF that canít export. There are counties in the EU with less land area than some Russian Oblasts (States). Seems logical regionalise ASF in Russia and allow regions free of ASF to export. For sure China and South East Asia is going to need pork over the coming years. Seems market forces will overcome the political and veterinary issues.

Our information is China is already considering importing breeding stock from Russia. Genesus has 6,000 High Health sows in Nucleus in Russia today that are part of Genesus Global Nucleus. Genesus for the past few years has been the number one exporter of breeding stock to China. The Chinese like the productivity, robustness and ease of management of Genesus pigs. If an agreement is made with Russia Genesus is well placed. The volume of breeding stock that will be required to restock farms in China is unbelievable.

 

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