Global beef price hikes force Russia to accelerate the recovery of the domestic cattle herd and beef production, says local agriculture analysts.

The situation in the Russian beef industry remains challenging. According to some local beef producers, current beef production in Russia remains unprofitable, requiring a huge support from the government.

According to some estimates, the development of beef cattle production in Russia during the next 10-15 years will require enormous investments estimated at billions of dollars. In addition, payback period of such projects is more than 10 years.

Meanwhile, Sergey Yushin, head of the Russian National Meat Association, say various factors are contributing to rising world meat prices. 

"Imposing restrictions on beef exports by the Argentinean government, growing domestic demand for beef in Brazil as well as China, which during the next five years will be ready to import up to 50% of total world beef production, may result in further increases in world prices for beef," he said.

Yushin also added that Iran could influence markets as it has the financial resources to pay higher prices for beef.