Russian WTO accession will half pork prices
Over the next few years, as a result of WTO accession, Russian pork prices will fall to the level of poultry, predicts Russia’s National Pig Breeders Union.
Currently, the average price for pork in Russia stands at the level of 195-200 roubles per kg (US$ 6.0-6.2) while the average price for poultry – 95-98 roubles per kg (US$ 3.0 -3.1). Next few years shall see slashed in the price of pork in Russia.
“In the short term, significant changes will not happen, because the price is determined not only by customs duties, but also by the demand. Today, due to various circumstances, we have observed very good demand for livestock products. Therefore, even with a reduction of fees current “super-profits” (of pork production industry) will distributed among retail chains and wholesale sector. But in the middle term (between two to five years), we will see the gradual decline in prices. Price of pork will gradually decrease to the current level of prices for poultry meat. At the same time we will see the additional increase of consumption,” said General Director of the National Pig Breeders Union, Yuri Kovalev.
Kovalev also noted that currently about 75-77% of the consumption of pork in the country is provided by domestic production, whereas five or six years ago the figure was 50-55%. However, Kovalev estimated that import share after Russia’s WTO accession may rise by 30%. However, the Union plans to reach the level of self-sufficiency on the pork market in Russia of 85% by 2020.
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