March 5, 2010

 

Russia may be forced to increase meat imports again

 

 

This year, meat imports to Russia could again increase, as producers cut back on feed and production citing lack of government financial help.

 

Russian producers are unhappy that the current amount of state subsidies to the Russian agriculture and meat industry still does not exceed 1% of the national GDP, whereas in the EU these figures amount to 40%, while in neighbouring Belarus 27%.

 

According to some analysts, the situation remains difficult despite all the efforts made by the state authorities to increase the amount of the domestic meat production and to remove import dependence.

 

Lack of cheap credit due to the crisis and low purchasing power are the major problems of the Russian meat industry, forcing many producers to reduce feed supplies and hence the volume of meat production.

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