High feed costs could lead to crisis in Russia’s pig production
The cost of pork production could increase by at least 25% by the end of the year due to rising feed prices according to Russia’s analytical centre ‘Sovekon’.
Last week, Russian feed grain prices continued to rise, although the growth rates were lower than in the previous week, the executive director of ‘Sovekon’ Andrei Sizov, Jr said. If the growth trend continues in August with the same speed it could spell disaster for the Russian pork market.
During the summer the average cost of feed grain in Russia increased by 450 rubles per tonne (US$ 15) per week – a record growth rate for the Russian market. As a result, since May of this year, according to various estimates, the cost of feed for pigs has increased by 15.7%, resulting in a significant reduction in profitability of producers nationwide.
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