Yuri Kovalev: With existing debts, it's not worth taking out new investment loans for pig farms.

He recalled that the first preferential loans issued in 2006–2007 were accessible even to start-up entrepreneurs. Market conditions allowed for successful project implementation and loan repayment within eight years.

"Today, the situation has changed. From 2023 to 2025, production costs increased by 30%—from 78 to 100 rubles per kg. The cost of servicing existing loans has doubled—from 4 to 8 rubles per kg. Even with wholesale prices rising in line with inflation, repaying them is already difficult," noted Yuri Kovalev.

He also pointed out that in recent years the cost of building pig farms has increased by 2.5 times, which requires the attraction of a larger volume of borrowed funds.

New loans should only be taken out by companies that have no outstanding debt on existing loans, the head of the industry organization noted. This will allow profits to be used to service new obligations.

"Without annual wholesale price increases at least equal to the inflation rate, existing projects are at risk, and launching new ones becomes virtually impossible," emphasized Yuri Kovalev.

The investment lending program is needed to increase production by 1 million tons.

According to industry estimates, achieving the goal of increasing pork production by 1 million tons by 2030 will require the implementation of new projects. An increase of 350,000 tons in 2024–2027 will be achieved through existing investments , including the last commercial loans issued before the key rate increase.

The remaining 650,000 tons are to be achieved through new pig farms, construction of which is scheduled to begin in 2025–2026. To this end, in 2025, the government and the Ministry of Agriculture of the Russian Federation renewed the preferential investment loan program for a period of nine years. This program is designed to launch new facilities with a total capacity of 650,000 tons.

According to Yuri Kovalev, some of the top 20 largest manufacturers have already utilized half of the loan limit. The remaining funds are planned to be distributed by the end of 2025.

"Once the total capacity reaches 650,000 tons, the issuance of loans will be stopped," said Yuri Kovalev.