Russia’s swine inventory will likely grow about 2%

According to FAS-USDA report, Russia’s swine inventory will likely grow about 2% to 17.5 million head at the end of December 2011 from 17.2 million head at the end of December 2010, as grain from the new harvest takes pressure off feed prices in the second half of the year. Due mostly to large investments in swine production envisaged in the target swine breeding program, pork production is expected to be almost flat in 2011, notwithstanding current feed prices.

Pork production is expected to be almost flat in 2011 as record high feed prices offset large investments in swine production envisaged in the target program “Development of pig farming in Russia for 2010-2012.” The RUR7.5 billion ($250 million) program aims to produce 2.7 MMT of pork (slaughter weight) by 2012 in order to reduce the share of imports in the market from 29% in 2009 to 14% in 2012.

Russia’s swine inventory is expected to grow 1.8% to 17.51 million head at the end of December 2011 from 17.2 million head at the end of December 2010, as grain from the new harvest takes pressure off feed prices in the second half of the year. According to the Russian Federal Statistic Service (Rosstat), the swine herd decreased 0.5% at the end of 2010 to 17.2 million head compared to 2009. This reduction happened for the first time since 2004 when the swine stocks totaled only 13.7 million. The hot summer in 2010 resulted in lower weight gains and greater swine slaughter because of high grain prices caused by record low grain yield in 2010. Despite lower overall numbers to start the year, retained sow stocks will allow the pig crop to increase by 0.3% in 2011 and will equal about 29.55 million piglets.