August 10, 2009

The global economic crisis has plunged volume of meat imports to Russia by more than 40 percent in June-July this year but this also gave new perspectives for the development of the poultry and pigs industry of the country, according to analysts.

The drop in the volume of beef imports within June-July period exceeded 40 percent, while pork imports 31 percent and poultry meat, 18 percent.

In addition to the influence of seasonal factors, the analysts say this trend, "is linked with high transition of meat stocks at the beginning of the year, a sharp depreciation of the Russian currency, a lack of working capital for the majority of participants in foreign economic activity, inaccessible and high rates of commercial loans, the anticipated decline in demand for manufactured goods and fresh meat."

The sinking volume of meat imports to the country was also due to the financial collapse of a large number of local meat processing enterprises who are the main consumers of imported beef and pork in Russia.

At the same time, imports of pork offal and beef reflect ongoing growth in demand for cheap forms of animal protein and shift in consumer preferences. Thus, the imports of pork offal in Russia in July 2009 rose by 23 percent compared to the same period last year, while beef offal by almost 20 percent.

Currently the average prices for Russian pig for slaughter stands at the level of September 2008 and is about 80 roubles (US$2.52) per kg live weight.

The wholesale prices of imported beef in the past year have increased by 25-40 percent in roubles and fell to 10-14 percent in dollar terms.

US$1 = RUB31.64 (August 10)