Russia - The meat market and prices

August 09, 2011

PRODUCTION

Pork Production. According to the Russian Federal State Statistic Service, total pork production in Russia (total production in industrial farms, peasant farms and rural households), during January-June, 2011, equaled 978.6 thousand tons in carcass weight (1 335.1 thousand tons in life weight). This was 3.4% greater than in January-June, 2010.

Pork production in industrial farms was up 7.4%  to 605,0 thousand tons, peasant farms production was up 7.1% to 26.5 thousand tons, rural households production fell by 3.0% to 347.0 thousand tons.

Beef production. Beef production in all categories of farms of Russia in the second quarter of 2011 was approximately 294.2 thousand tons in carcass weight, which is 6.9% lower than in the second quarter of last year and by 8.7% less than in the first quarter of current year. On beef production in Russia has a high influence seasonal factor that is primarily due to the large share of private households in total. The second quarter is traditionally characterized by the lowest production volume, the fourth - highest.

In the first half 2011 production of beef in all categories of farms in Russia amounted to 616.5 thousand tons in carcass weight (1081.6 thousand tons in live weight), which is 6.4% lower than in the first half of 2010. Beef production in carcass weight per capita in the first half of 2011 amounted to slightly more than 4.3 kg (in January-June 2010 - more than 4.6 kg). In 2011, as estimated by eMeat, it will reach just over 11 kg/person.

In January-June, 2011 compare to the same period of last year industrial farm production fell by 10.3% to 240.4 thousand tons in carcass weight; peasant farms production amounted to 29.2 thousand tons in carcass weight, which is 4.7% more than in the first half of 2010; rural households beef production fell by 4.5% to 346.9 thousand tons in carcass weight.

Poultry production. Poultry production in all categories of farms in Russia in the first half of 2011 amounted to approximately 1 466.6 thousand tons in carcass weight (1 995.4 tons in live weight), which is 10.9% more than In January-June 2010. At the same time, industrial production of poultry (the data on industrial farms) increased by 11.8% to 1 362.6 thousand tons in carcass weight, in rural households - fell 0.2% to 96.3 thousand tons, in peasant farms - increased by 20.5% to 7.7 thousand tons.

PRICES for imported pork in Russia under the CIF, St. Petersburg (the price at the port of St. Petersburg before the payment of customs duties and taxes).

Pork prices. In late June, a record high volume of pork imports (mainly from Brazil) "knocked down" the prices. During July there was a steady rise for most of cuts of imported pork. In early August, prices again declined slightly.

As for eMeat  Data (www.emeat.ru), in early August, 2011, are established the following prices for imported pork: pork sides (produced in Brazil) – 2.65-2.70  USD/kg, collar b/l (Canada,  EU, huge volume contracts) – 4.06-4.15 USD/kg, shoulder b/l (Brazil) – 3.25-3.50 USD/kg, shoulder b/l (EU, huge volume contracts) – 3.05-3.10 USD/kg, ham b/l (Brazil) – 3.45-3.70 USD/kg, ham b/l (Canada) – 3.45-3.52 USD/kg,   loin b/in (Brazil) – 2.95-3.05 USD/kg, loin b/l (USA, Canada) -  4.09-4.15 USD/kg, ham b/in (Canada) – 2.28-3.35 USD/kg, ham b/in (USA) – 2.55-2.65 USD/kg.

Beef prices. In July 2011 there has been some decline in prices for imported beef relative to their levels in May and June, which is primarily due to a significant increase in shipments of Brazilian beef to Russia in June this year. For a month the average price of trimming (80% lean) decreased by 4.1%, in two months - by 8.1%, prices of  the cuts of  fore quarters in July compared to June fell by 0.9%, compared to May - 4.8%, the average cost of round cuts declined by 0.9-1.2%. However, despite some reduction in prices, they remain substantially above their level in July last year.

In early August, 2011, are established the following prices for imported beef under the CIF, St. Petersburg: round cuts in 3 cuts (topsides, knuckle, silversides; Brazil) – 5.10-5.21 USD/kg, topsides (USA) – 4.90-5.00 USD/kg, silversides (USA) – 4.55-4.67 USD/kg, trimmings (80% lean; Brazil) – 3.70-3.87 USD/kg, chuck&blade (Brazil, USA) – 4.61-4.70 USD/kg, shin/shank (Brazil) – 4.21-4.26 USD/kg.

Poultry prices. Average prices for chicken meat last month fell slightly for most positions. For example, chicken legs quarters from the USA in July dropped in price by 5.5%, from Brazil – fell by 6.1%. In August there is the next level of prices for imported poultry meat in Russia (under the CIF, St. Petersburg): chicken legs quarters (USA) – 1.16-1.20 USD/kg (huge volume contracts – 1.01-1.08 USD/kg), chicken thighs (Brazil) – 1.43-1.50 USD/kg, chicken breasts (USA) – 2.85-3.00 USD/kg, chicken breasts (Brazil) – 3.00-3.18 USD/kg.  

Source: Argentine Beef Packers S.A.


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