Russia may redistribute meat import quotas

Russia may redistribute meat imports quotas in favour of Brazil, Argentina and other Latin American countries while reducing the supply of meat from the EU countries.

According to earlier statements of Sergey Yushin, head of the Russian National Meat Association, the mechanism of imports' regulation should be adjusted in order to meet the needs of the Russian meat market.

In the case of beef, currently more than 75% of all Russian quotas go to the EU, however Brazil, Argentina, Paraguay and Uruguay are the major suppliers of beef to Russia.

Due to restrictions most of the Latin American comes to Russia in excess of quotas which is associated with high customs duties for them.

At the same time the EU meat producers have a guaranteed share in the Russian meat market, and have an opportunity to raise prices on its meat. However, the EU suppliers are not able to fill their quotas.

This new system of meat quotas distribution in Russia could lead to a sharp increase in meat imports, according to Russian meat industry analysts. The Russian government plans to put up nearly 30% of all meat quotas for the auction, with the view that it would make the local meat market more competitive.

But major foreign companies can buy these quotas at any price, and those companies would be ready to invest millions of dollars in order to take a bigger share of the Russian meat market, said Ivan Obolentsev, chairman of the Russia Agro-Industrial Unit.