Reorientation of Russian pork producers to the external market: challenges and prospects

Market status

According to the National Union of Pig Breeders, in 2024 , the volume of pork exports from RUSSIA increased by more than a third, reaching 320 thousand tons. This is 6-7% of the total volume of pork production in the country. In April 2025, the wholesale price of MEAT was 144 rubles per 1 kg of live weight, which is 1% more than the previous week and 25% higher than in the same period last year.

However , prices for different parts of the carcass vary. For example, brisket on the bone increased in price by 29%, reaching 258 rubles per 1 kg, while ham increased in price by only 3%, to 265 rubles. Shoulder and neck increased in price by 5% and 6%, respectively. it is important to note that pork is rising in price more slowly than other types of meat: over the year, it has increased in price by only 8.9%, while beef and lamb have risen in price by 14.8%.

Reasons for the reorientation

The main reason for the reorientation to EXPORT is the decrease in the marginality of pig farming, which currently stands at about 15%, which is half the figure for previous years. The main factors contributing to this fall include:

1. Rising feed prices: The share of feed in the cost of pig farming reaches 60-70%. In recent years, feed prices have increased significantly, which negatively affects profitability.

2. Rising costs: Increased costs of salaries, electricity and fuel also puts pressure on business profitability.

3. Inflation: Annual inflation in March 2023 was 10.3%, which further complicates the financial situation of producers.
 

Export Opportunities

Despite the difficulties, export markets offer new opportunities for Russian pig farmers. For example, pork prices in CHINA are twice as high as in Russia, making exports attractive. However, not all promising areas are available to Russian producers. In particular, European markets remain closed due to veterinary restrictions, which limits growth opportunities.

In addition, South Korea and other Asian countries are also of interest, but require strict quality and safety standards for products. This may become an additional challenge for Russian producers, who must adapt to international requirements.

Future Prospects

According to expert forecasts, in the next 3-5 years, Russian pork producers may face a reduction in production volumes. This is due to the continuing decline in profitability and rising costs. However, if export deliveries are established and new markets are reached, this may compensate for domestic problems.

In conclusion, the reorientation of Russian pork producers to the foreign market is a response to the challenges facing the industry. Although the situation remains difficult, the potential benefits from exports may become a key factor for the sustainable development of pig farming in Russia.