July 24, 2006

Russia ministries want 30-percent cut in 2007 poultry import quota

The Russian Agriculture Ministry, supported by the Economic Development Ministry, will within the next few days submit a proposal to the government to cut by 30 percent the planned 2007 poultry import quota of 1.171 million tonnes, the Agriculture Ministry's press office said.

The press office quoted Agriculture Minister Alexey Gordeyev as telling a recent meeting at the ministry that the 2007 poultry import quota must be changed to avoid flooding the Russian market with cheap poultry from the US.

A report prepared by the Agriculture Ministry and economic development ministry says Russian poultry market is becoming saturated.

The reasons are the current low poultry prices resulting from falling world demand for poultry caused by bird flu, together with an 18.5 percent annual growth in national poultry output and increased supplies from the US after the 2005 agreement between the two countries on poultry trade.

The report says the US, which accounts for about 40 percent of Russia's poultry imports, is hoping to increase supplies to Russia and if measures are not taken the domestic market will be flooded with cheap US poultry.