July 30, 2010

Russian cattle farming hit by drought

Cattle producers in Russia are struggling to avoid a decline in numbers as a severe drought, with 16 regions already declared drought emergency zones, diminishes feed supplies.

The local government has ordered proposals to be drawn up for subsidised sales of stockpiled grain to livestock farmers. In addition, the Russian Agriculture Minister has announced drought stricken regions will be given loans at preferential rates to assist producers through the crisis.

According to the Minister, more than RUB40 billion (US$1.32 billion) have already been requested for financial assistance.

Russia has attempted to rebuild the national cattle herd in recent years to become self sufficient. But despite the drought, the sector has failed to reach government targets, relying heavily on beef imports to supply the domestic market and buying breeding animals abroad, along with attempting to modernise breeding centres.

Russian beef imports during the fiscal year to April fell 11% to 537,761 tonnes swt compared with the same period in 2008-09, as importers continue to trade cautiously after 2008's financial crisis and lower supplies from Argentina and Brazil have challenged trade.