June 10, 2013

Russia to allocate US$500 million to support local meat producers

In order to provide support to local meat producers, Russia's Agriculture Ministry will allocate RUB12 billion to RUB16 billion (US$375 million to US$500 million) annually until 2018, within the framework of WTO rules.

"The Ministry is working on the issue of amending the mechanism of state support, so that it takes into consideration new ways of supporting meat producers under the conditions of the WTO," said Deputy Agriculture Minister Dmitry Yuriev during a business conference in Moscow on Friday (Jun 7).

"This year, support will be provided in the form of compensation for growing feed costs and will cost RUB15 billion (US$467 million)," Yuriev said. "In the near future, we are planning to spend RUB12 billion to RUB13 billion (US$375 million to US$405 million) per year and that amount will grow to RUB16 billion (US$498 million) annually by 2018," he added.

"We have preliminary support from the Economic Development Ministry," the deputy minister said. "But they believe that the initiative must be limited to 2016," he added. Yuriev said the Agriculture Ministry will try to defend its position on the support in the government.

Meanwhile, the Federal Customs Service reported Friday that from January to April, 142 tonnes of poultry valued at US$225 million have been imported, which is a 20% increase over the same period last year.

Imports of other types of meat were down 5% for the four-month period to 354,000 tonnes, and were valued at US$1.4 billion.