Talks with Russia see Latvian pig prices rise

16-02-2015 | | |
Talks with Russia see Latvian pig prices rise
Talks with Russia see Latvian pig prices rise

When it was announced that Russia will resume talks on the renewal of pork supplies, the Latvian pork market experienced a price hike. Hopes are high that the trend continues and takes Latvian pig producers to breakeven.

According to Dzintra Lejniece, head of the Latvian Association of Pig Breeders, from the perspective of pig breeders, the situation in the industry in the last couple of weeks has improved. “We’ve see a nice trend in the European market, where prices rose slightly,” said Leynietse, adding that the price increase may have been due to statements released of the possibility that Russia will begin negotiations with individual European countries on the resumption of pork imports.

Pork slaughter weight price up by 10 cents

“This message appeared a few weeks back. As soon as it was announced, the prices began to rise. Now the price of pork [slaughter weight] has increased by 10 eurocents, compared to the level at the beginning of the year. For us it is a lot. If the neighbouring markets of Poland and other countries previously had the price of €1.22 per kilo of pork, now it is €1.35 per kilo. And we are happy with every penny,” she added.

Latvian pig producers sellling below cost

However, so far the Latvian pig producers are selling meat below operation costs, but the raising prices has at least reduced their losses. According to Lejniece currently the price of pork in Latvia is standing at 0.87 – 0.95 euros per kilo. Latvian breeders will reach the zero level of profitability if the price rises to €1.20 per kilo.

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Vladislav Vorotnikov Eastern Europe correspondent