Processing
Russia may stop extra-quota meat imports 15 Jan 2010
The share of meat imports to Russia remains high and is considered an obstacle for the development of domestic livestock.
By Evegen Voronikov
Currently, Russia’s extra-quota meat imports are subject to high duties (75% for pork, 80% for poultry and 50% for beef), however imports, even at such rates, sometimes remain profitable, according to some Russian producers.
At the same time, most meat industry analysts believe that stoppage of extra-quota meat supplies to the country will lead to shortages in the domestic market and higher prices, especially in the Russian beef industry which current levels of production are still insignificant.
However, there is possibility to resolve the problem through the redistribution of quotas in favor of Latin American suppliers, where most of extra-quota meat comes from to Russia. The current distribution of quotas does not reflect the geography of meat supplies, the real possibilities of exporting countries, as well as the needs of the Russian market.
In case of quotas’ redistribution in favor of Latin America countries, imposing a ban on extra-quota meat imports would not affect the Russian meat market or even improve situation on it.
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