March 22, 2011

Russian imports of poultry to exceed tariff rate quota

Russian imports of poultry in 2011 are expected to amount 385,000 tonnes, surpassing the country's tariff rate quota by 35,000 tonnes, according to the National Chicken Council.

Whole broilers and parts are expected to account for 375,000 tonnes while the remaining 10,000 tonnes comprise of turkey parts.

The profitability of importing mechanically deboned poultry meat (MDP) from the EU at over-quota tariff rates is Russia's motivator.

Russia imported a total of 610,000 tonnes of broilers from all sources at a value of US$822 million, a 22% drop in quantity and a 20% decrease in value from 2009. The US supplied 294,920 tonnes of broiler parts in 2010, while Brazil shipped 137,468 tonnes of broilers.

Rising feed costs in Russia are reducing profits and capping investments in the domestic broiler industry.

According to USDA's Foreign Agricultural Service, Russia will remain an attractive market for poultry imports for the next several years due to consumption patterns, particularly for affordable and frozen poultry cuts that do not compete against domestically produced chilled whole birds.