Russia Aims to Capture 10% of China’s Pork Market

• Russian pork producers plan to capture 10% of the Chinese pork market in the coming years, leveraging current trade disputes between Beijing and Brussels.
• China, the world’s largest pork consumer, only began importing Russian pork in February 2024, when it approved exports from three major Russian companies. Currently, the European Union dominates the Chinese market with a 51% share.
• The approval to import Russian pork reflects strengthening economic ties between China and Russia, especially as both face increasing pressure from Western sanctions and tariffs.
• Yuri Kovalyov, head of the Russian Union of Pork Producers, stated that they aim for Russia to account for 10% of China’s pork imports within the next three to four years, despite anticipated competition from countries like Brazil and China‘s own increasing production.
• Russia expects to produce 5.2 million tons of pork this year, up from 4.9 million tons in 2023. This positions Russia alongside Brazil as the fourth-largest pork producer globally, after China, the EU, and the USA.
• Russia plans to export 50,000 to 60,000 tons of pork to China this year, capitalizing on the higher prices in the Chinese market, which are 30% to 40% higher than in Russia.
• Russian Minister of Agriculture Oksana Lutova estimates that total Russian pork exports will reach 310,000 tons this year, including live animals.
• Trade expansion plans could be hindered by payment issues between Russia and China, as Chinese banks, under international sanctions, are cautious about processing such payments.

Moscow, August 19 (FFN) – Russian pork producers are setting their sights on capturing 10% of the Chinese pork market in the next few years, aiming to take advantage of ongoing trade disputes between Beijing and Brussels, according to Reuters.

China, the world’s largest consumer of pork, only began importing pork from Russia earlier this year when Beijing approved three major Russian companies to export pork. Currently, the European Union holds a dominant position in the Chinese market with a 51% market share.

The decision to import Russian pork is a sign of deepening economic relations between China and Russia at a time when both countries are under increasing pressure from Western sanctions and trade tariffs. For instance, the EU recently imposed temporary tariffs of up to 37.6% on Chinese electric vehicles, prompting China to launch an anti-dumping investigation into pork producers from Denmark, the Netherlands, and Spain.

“This trade dispute presents an opportunity for us to demonstrate our competitiveness in the Chinese market,” said Yuri Kovalyov, head of the Russian Union of Pork Producers. He added that their goal is for Russia to secure about 10% of China’s total pork imports within three to four years. However, Kovalyov acknowledged the strong competition from other pork-producing countries like Brazil and noted that China itself is increasing its pork production. Moreover, while pork demand in China is gradually declining, the country still consumes about half of the world’s pork supply.

Russia anticipates producing 5.2 million tons of pork this year, up from 4.9 million tons in 2023 and far exceeding the post-Soviet low of 1.5 million tons in 1999. At its peak, Soviet production in 1989 reached 3.5 million tons. This production surge places Russia alongside Brazil as the fourth-largest pork producer globally, trailing China, the EU, and the United States.

For 2024, Russia aims to export between 50,000 and 60,000 tons of pork to China, capitalizing on the higher export prices in the Chinese market, which are 30% to 40% higher than domestic prices. Russian Minister of Agriculture Oksana Lutova projects that total pork exports from Russia will reach 310,000 tons this year, including live animals.

The expansion plans, however, may face challenges due to payment processing issues between Russia and China. With Chinese banks under the scrutiny of international sanctions, they have become more cautious in handling such transactions. Some industry sources suggest that the agricultural sector might resort to barter trade, although Kovalyov stated that barter is not currently part of their strategy.

Key Metrics of Russia’s Pork Export Ambitions