The Russian veterinary surveillance organism Rosselkhoznadzor has started registering the first 3 companies for pork exports to China. The initial deliveries are due in the next 2 months, reports PigProgress. This will lead to distortions in the international market, especially in Europe.

Miratorg in the spotlight

Previously, Russian Deputy Prime Minister Victoria Abramchenko and Russian pork producers anticipated that the first batches of Russian pork would be delivered to Chinese customers by mid-2024.

Rosselkhoznadzor provided the Chinese party with information on compliance with the recommendations given by Chinese officials during inspections of pork production facilities in Russia between December 4 and 14.

Russia's largest pork producer and processor, Miratorg, is among the 3 companies preparing to export pork to China, as reported by the local news station ROSNG. The Russian government agency Agroexport previously reported that Sibagro, a prominent Siberian pork company, is also working on launching pork exports to the Chinese market.

Surplus looming

Russian authorities may rush to start exports to China to avoid oversupply in the domestic market. This still looms despite a substantial increase in consumption in the previous year.

Over the last 2 months, the average price of live pigs in Russia has decreased by 25%, according to the Russian Meat Association (RMA). To some extent, the price dynamics are attributed to seasonal factors, as pork prices are traditionally higher during the grilling season and lower in the colder months.

Despite price turbulence, RMA expects domestic meat consumption to continue growing. In 2024, it is expected to reach 80 kg per capita.

"Humble" forecasts

There is no clarity regarding planned export volumes. Yuri Kovalev, President of the Russian Union of Pork Producers (RUPP), estimated that Russian exporters could capture a 10% share of pork imports to China, equal to 2 million tons.

However, Russian farmers will not be able to fully reveal their potential in 2024, RUPP said in a recent statement. This year, deliveries will likely be limited to only 25,000 to 30,000 tons due to the need for registration, adaptation to the Chinese market, and the establishment of comprehensive logistic and financial chains, RUPP said.

In 2023, Russian pork producers exported 255,000 tons of pork, a 66% increase compared to the previous year, according to RUPP.

Pork exports from Russia to China may have effects on the European market, with implications for Romanian pork imports. (Photo: Pixabay)