Wholesale prices for pork in Russia - at historical highs

Pork prices, established in late March at a level above 150 rub. / Kg - this is an absolute historical maximum in rubles.

Since the end of March the price dropped slightly : According to the National Meat Association , April 14, it was 152.2 rub. / Kg . At the same time in early January the price was at 114 rub. / Kg , the newspaper "Vedomosti" . This spring, the price - at historical highs , agrees CEO of the National Swine Union Yuri Kovalev . Adjusted for inflation, in 12 - 15% of the current price is comparable , he said , with the level in 2012 , when the previous records were recorded . At the beginning of 2012 pounds of pork in the wholesale market cost 138 rubles. Says Daria Snitko Gazprombank analyst , referring to the IAA IMIT . In 2010-2011 . in mid-April, the price was kept at 119-122 rub. / kg , in 2012 - 132 rub. / kg . Earlier this year " RusAgro " sold Jivka kilogram ( company does not sell half-carcasses ) for about 88 rubles. , Now - to 100 rubles . , And the maximum was reached about three weeks ago, when 114 pounds worth rub. , Says deputy director Sergei Investment Tribunsky . Representative "Cherkizovo" said the company raises prices in accordance with market trend , refusing to discuss the details. Prior to Russia's accession to WTO, the domestic production of pork was one of the most profitable sectors : prices were at 94-96 rub. / Kg body weight , and the EBITDA margin the largest manufacturers exceed 40 %. But the conditions of accession included the reduction of import duties on pork as quota (from 15 to 0%), and outside ( from 75 to 65% ) and zero duties on live pigs . As a result, in September 2012 began to rise sharply import and domestic prices have fallen . So , "Cherkizovo" in the I quarter 2013 reported about reducing the selling price by 28% compared with the same period in 2012 ( from 80.5 to 57.6 rub. / Kg .) Prior to this, the price at the beginning of the year is usually increased. At the same time breeders had to use grain harvest in 2012 , the price of which was unprecedented high . As a result, in the first half of last year that run on the verge of profitability , even talking major manufacturers . Adjusted EBITDA margin from "Cherkizovo" segment " pig " in 2013 was 17.4 % - in 2012 it was 37.3% . " Agribusiness " reduced net income in 2013 by 14.1 % to 9.6 billion rubles . "Cherkizovo" - by 71% to $ 64.5 million Now the cost of production is significantly lower than in I quarter of 2013 , said the head of the executive committee of the National Meat Association Sergey Yushin : "Since then rose lubricants , increased salaries, but feed cost significantly less than a year ago ." " This year, due to lower supply we have an opportunity to win back losses last year : even at such prices refiners continue to buy ," - said the representative of "Cherkizovo" Alexander Kostikov . Higher prices dictates deficit caused by the closure of supply of pork from the European Union , explains S.Yushin . From January 30 Rosselhoznadzor temporarily stopped taking pork products from the EU to obtain security guarantees from the European Commission. Decision was taken after an outbreak of African swine fever (ASF ) was recorded in Lithuania. In 2013, the European Union , according to Yushin , accounted for about 60 % of all deliveries of imported pork in Russia ( on imports for about 30 % of the market ) . April 9 EU sent a request to the WTO at the beginning of the proceedings concerning the introduced Russian restrictions on the import of pork products from the EU. Until recently, Russia has remained closed for another large supplier - USA ( pork in this country Russian vets found ractopamine , meat which is forbidden in Russia to sell ) . March 21 Russia lifted the ban , but the supply is only open for two company-producers ( of 179 accredited ) and four refrigerators. Opening of supplies from the United States - " a kind of counterbalance to European pork suppliers who claim that Russia will not be without their products," explained Basil Lavrovskiy , Head of Rosselkhoznadzor for inspection work. But the price of live pigs in the United States have increased significantly in recent years - it is pushing import prices in Russia up , passed through a representative CEO "Cherkizovo" Sergei Mikhailov . The main flow of pork now comes from Canada and Brazil, says D. Snitko . According to her, with the closing of the EU total shipments of imported pork and offal fell from 8000-10 000 tonnes (the second decade of January ) to 6000 tonnes per week.