February 22, 2008

Reduction in custom posts could cause price hike of meat in Russia
 

Russia will witness a price hike in meat that will be the result of reduced custom posts ordered by the Federal Customs Service (FCS).

The controversial order, which was issued on February 15, 2007, will be implemented on April 15, 2008.

Lists of custom posts allowed by the FCS include 44 terminals, all of which are equipped with storage. Meat importers must prepare the storages at the custom terminals and certify them in Rosselkhoznadzor by April 15, 2008.

FCS' measures are expected to lead to a transport collapse, and a price hike of meat by 3-5 percent, although FCS has rejected these forecasts.

Russian food quality watchdog Rosselkhoznadzor has appealed against the decision, asking the FCS to re-adjust the document that limits the number of posts for declaring meat. Meanwhile, Russia's meat industry is waiting for the final decision.