June 27, 2012

Russia beef imports fall 12% on-year

Figures for Russia's beef imports within the January to April period reveal a 12% on-year decline, totalling 150,100 tonnes, as beef imports slowed in the first four months of 2012.

The import market remains dominated by frozen product, accounting for 93% of imports during the period. Contributing to the slow start to the year has been a depreciation of the Russian currency, which has increased the cost of importing beef into Russia.

Market share remains dominated by Brazil, with imports from Brazil accounting for 42% of total imports, compared to 37% in 2011. Although gaining market share, the volume of product imported from Brazil fell slightly, down 1% on-year. The growth in market share comes as overall volumes imported decreased. After being partially banned from the Russian market in June 2011, a depreciation of the Brazilian real has enabled Brazil to improve their competitive position in the Russian market.

Although Brazil has dominated the market in early 2012, Paraguay (14 %), Uruguay (13%), Mexico (6%), US (6%) and Australia (5%) all have significant market shares.

Accounting for the decrease in overall imports in 2012 has been significant decline in volumes from Australia, down 65% to 7,881 tonnes, and Uruguay, down 18% to 19,243 tonnes. Conversely, imports from Mexico and the US increased two fold, to 9,044 tonnes and 8,708 tonnes respectively, with imports from Paraguay also up 40%, to 21,322 tonnes.

Imports from Australia have slowed on-year, with Australian manufacturing exports largely directed to the US in 2012.