June 4, 2009

Brazil has requested Moscow to change its meat tariff quotas so that the South American country would increase its share in Russian imports.

Brazil is asking that within the quotas there are no subdivisions so that the country could compete within them, said Brazilian Agriculture Minister Reinhold Stephanes on Wednesday (Jun 3).

But Brazil understands that Russia has agreements with other countries on quotas so it would be happy if Russia simply lowers the duty set on meat imported above the quotas, Stephanes said, adding that his Russian counterpart Yelena Skrynnik has promised to examine this issue.

Russia regulates meat imports by tariff quotas, with imports above the quota subject to high duties. Quotas for 2010 and following years have not been set.

Brazil hoped to increase pork exports by 50,000 tonnes and to discuss imports of fertilisers and wheat from Russia.

Stephanes said technical consultations are currently taking place between Russian grain suppliers and Brazilian buyers, and that he is confident of progress in the sector.

He said Russian wheat could substitute some supplies from Argentina, which has been hit by a major drought.

Brazil may import between one to three million tonnes, said Stephanes. 

Russian analysts and grain traders said exports can only be profitable if ships carrying grain to Brazil bring back other commodities such as soy.