RusAgro benefiting from Russia’s pork ban
Russian meat giant, RusAgro has reported strong operational results for the third quarter of the year, especially in its pork division. Representatives of the company are associating the improvement in profitability mostly to the trade restrictions on pork imports.
The report from Rusagro said revenue in its pork division jumped 161% in the third quarter, year-on-year, to stand at RUB5.5 billion (US$131 million).
At the same time the company's third-quarter sales rose 65% to around RUB17 billion (US$405 million) following the ban on pork imports from Europe at the beginning of the year. Moreover, trade restrictions have resulted in a deficit in the country's poultry market, which has increased the average price of pork.
According to the report of RusAgro, in the third quarter of 2014 the price of pork in carcass weight jumped, on average, by 27% year-on-year. At the same time, the price of pork on the domestic Russia market continues to grow - RusAgro expects its profitability to further increase until the end of the year.
Russia's largest pork producer, agricultural holding Miratorg has also reported strong results for the first three quarters of the year with an increase in pork production by 8% year-on-year.
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