May 24, 2012

Russia to develop local beef industry, cut beef imports

In order to develop its domestic meat industry through the creation of large holdings, Russia should cut its dependence on meat imports, Prime Minister Dmitry Medvedev said Wednesday (May 23).

"Prices for beef have recently grown by almost a third… which is very serious growth. Russia needs to create a modern and efficient meat industry by cutting its dependence on imports and provide the domestic market with affordable high quality meat, while also obtaining a prominent position on the international market," Medvedev said during his visit to the Bryansk Region's Kotlyakovo Farm.

Medvedev also said the Kotlyakovo Farm investment project could help meet 10% of Russia's beef demand, but to meet the domestic needs fully, the country should establish at least 10 large agricultural complexes to increase beef production by 90% from the current 1.7 million tonnes of cattle meat. He added that animal breeding has fallen in recent years despite Russia having the necessary conditions and investments to develop the domestic meat industry.

Deputy Prime Minister Arkady Dvorkovich also said that the state agricultural development programme for 2013-20 would include a special animal farming subdivision.

"By 2018-20 we may enter the fulfilment of the most part of the Russian population's demand for affordable and high quality beef," Dvorkovich said.

The current import quotas for beef amount to around 550,000 tonnes a year. The regions of Russia's Far East, Siberia and the Altai have good prospects for cattle breeding because of the amount of space available, Dvorkovich also said.

"Implementation of one project takes about five years and the payback period - more than 10," he added.