Pork production in January was a record

Private sector Russians, providing nearly 40% of pork production, reduce its production. The Ministry of Agriculture is concerned that industrial pig farms will not be able to compensate for falling volumes, leading to an increase in the import of meat to Russia.

However, the breeders themselves responded to these concerns in Stakhanov, increasing pork production in January by 31%. Increase is due to the commissioning of the pig, the construction of which began two years ago, experts explain. Although there is a possibility of the enterprises ‘resets’ population due to low meat prices and high grain prices.

The Ministry of Agriculture has been a marked decrease in the production of pork in private households of citizens, said last week at a meeting of the State Duma Committee on Agriculture Deputy Minister of Agriculture of Russia Dmitry Yuriev. "We fear that the agricultural organizations, despite the increase in production will not be able to compensate for falling volumes and the net result is to increase the market share of imported meat," — he said.

According to the ministry, in the past year, small farms have reduced production by 120 thousand tons, but with agricultural organizations increased their output by 240 thousand tons of meat.

The decline in private farms can be attributed to the loss of incentive to grow animal feed due to the cost and reduce the price of meat, as well as the reduction of livestock because of the spread of African swine fever (ASF).

According to Director of the Department of Livestock Agriculture Vladimir Labinova, the Ministry submitted to the government a number of proposals to support breeders who are now undergoing interagency coordination. For example, a one-time financial support to producers, offsetting the cost of the purchase of feed, is to maintain the investment climate in the industry. "This measure is not intended to compensate for losses is a tool that shows that the government is ready to support the industry in difficult times and will continue to do it," — said Vladimir Labinov.

According to the Ministry of Agriculture, in 2012, private sector provided 36% of pork production in the country, agricultural enterprises — 61%, farmers — 2%. In 2012, the Company produced 3.31 million tons of pork. On 1 January 2013 the number of pigs in Russia is estimated at 18.8 million head, up 9.2% over last year. The number of pigs in farms increased by 2.23 million head. At the same time, private farms pig population decreased by 556 thousand heads in farms — to 99 thousand

And yet, despite the fears of officials, agricultural organizations steadily increasing production. For example, in the fourth quarter of 2012, the industrial production of pork has increased by 18% compared to the same period in 2011. And in January of this year, the dynamics of growth of production was a record at all — 31% compared with January 2012, to 172.7 thousand tons This dynamic has exceeded even the expectations of the National Union of Pig Producers (HCC), which is estimated to increase production within the 18 — 20%.

Nicholas Birulin, chief expert analysis and market development of the NSS, explains the explosive increase in the production launch of the new pig farms, the construction of which began two years ago. To market influences and "reset" of livestock, especially small farms, because of low prices for meat and high grain prices, adds CEO of the holding company "Agropromkomplektatsiya" Sergei Novikov. "We have this situation also affected, but we hold on through established reserves, — he said. — In the last few years has been actively developing its own food supply by creating a certain reserve to not buy grain from the market. Because of this population continue to build. "

In addition to government support Union pig sees a significant resource to stabilize the situation in the sector in the retail trade. According to Mr. Birulin, despite a 30 percent drop in wholesale prices, retail price tags are at the highest level, and in some stores continue to grow. If the retail pork began to fall in price to adequately reduce the wholesale level, the demand for meat could increase, said the expert.

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