April 13, 2010

US beef exports to Russia rebound

In recent weeks, US beef exports have been bolstered by a significant rise in the Russia market, ranging from 800 to 1,200 tonnes per week, according to the US Meat Export Federation (USMEF).

Recent weekly sales data show beef exports to Russia at levels not seen since mid-2008, a year in which exports to Russia reached a record US$95.3 million.

"We track the export sales on a weekly basis and we're off to a start this year that could put us on track to equal the export volume we had to Russia in 2008, which was a record year," said Thad Lively, USMEF senior vice president.

"The other thing that works to our advantage is the Russian currency is pretty strong compared to the US dollar so that increases buying power of our customers in Russia," he added.

Russia is normally a mainstay market for beef liver and other variety meats, but the real difference recently has been the increase in muscle-cut demand, according to Lively. "What was different in 2008 and what we see for the first quarter of 2010 is having significant cuts from the hindquarter, mainly round cuts, moving into Russia," Lively added.

Brazil is the US's principal competitor in Russian beef market given its favourable exchange rate against the Russian currency.