Russian pig farming expansion stagnates due to interest rate explosion

Published 2024년 12월 24일

Tridge summary

Russia's pig farming sector is facing a crisis due to soaring interest rates on bank loans, which have reached 21 percent due to high inflation. This has made standard loans for pig farming almost unobtainable, leading to a halt in expansion and a period of stagnation expected by 2025. The Russian Association of Pig Farmers is urging the government to reinstate a program of low-interest loans to avert the financial collapse of several pig farms due to escalating production costs.

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Original content

After several years of rapid expansion, the pig sector in Russia is in danger of ending up in a deep crisis, reports the German trade magazine TopAgrar. This is mainly due to the sharp increase in interest rates for standard bank loans. In October, the Russian central bank raised the most important interest rate to 21 percent. It is expected that another 2 percent will be added soon. The cause is the rapidly rising inflation, which is now at 9 percent. Due to the high interest rates, standard loans for pig farming are almost unavailable. The Russian Association of Pig Farmers expects that the expansion of pig farming that was still visible this year will come to a standstill in 2025 and that stagnation will follow. That is why the association is calling on the government in Moscow to revive a program of low-interest loans for the pig ...

Source: Nieuwe Oogst