Russian beef imports seen to continue rise

The USDA forecasts Russia's total beef imports to rise 11% to 780,000 tonnes cwt in 2010 after falling 38% in 2009.

Local Russian beef production is expected to continue to fall as a result of the continued low levels of government support to the industry.

According to local producers, current state subsidies to agriculture account for no more than 1% of Russian gross domestic product - a low figure when compared to the EU's 40% and neighbouring Belarus's 27%.

According to the USDA, Russian beef production is expected to continue its long term fall as a result of the industry's low profitability and lack of investment. However, pork and poultry production has improved, given its higher margins and easier productivity increases.