Russian pig producers take a new market approach
The pig price in Russia is 128.8 Roubles per live kg (US$1.75). This has increased a little over the past few weeks. Covid travel restrictions have meant many more Russians taking holidays in Russia, increasing local demand for pork. Also, there have been some losses in production due to ASF and PRRS outbreaks (in some of the larger companies) who have gone to the market to fill gaps in production.
On the other hand, taste and consistency are the two major reasons that people continue to buy a food product, producing and selling pork that is consistently tasty seems to be a good idea for maximizing profit, according to the latest market report from Genesus. "One market that tends to get overlooked in many places is the domestic market. Selling more and for a higher price in local markets is the easiest way to increase profit. In Russia, again as in many countries, the perception of what the market is and the reality are two different things. We hear everywhere from slaughter plant buyers and marketeers 'we need leaner pork' and also 'the consumer will not pay more for better quality. Then when you look at the market, the highest-priced cuts are the fattest and tastiest! So clearly Russian consumers, as everywhere, will pay more for fatter tastier pork," said Simon Grey, Genesus General Manager for Russia, CIS and Europe.
He offered AgroEco's example, as the company located in Voronezh added in the market pork with better quality. "AgroEco use Genesus for part of its own production and has a Genesus Nucleus to provide breeding pigs for itself, with the surplus being sold into the Russian market. Part of the Nucleus is a herd of pure Genesus Duroc, which is the recognized market leader for the tastiest pork. AgroEco sells all the pure Duroc Sired Pigs through its own retail outlets at a significant premium over 'standard pork'. Local demand is high, with the Genesus Duroc Sired meat regularly selling out. To guarantee supply it needs to be forwards ordered.
Yes this may be only a very small % of the Russian market, but an excellent sign that producing a constantly a tasty product that consumers want more of and are willing to pay more for, does work," he added.
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