August 24, 2012

Russia's pork prices to gradually decline in 2014-17

Due to a reduction of customs duties, Russia's pork prices will gradually decrease in 2014-17 and approach poultry prices.

Russia became a full member of the World Trade Organisation (WTO) on Thursday (Aug 23), and thus reduced the customs duty for pork imports under quotas to 0% from 15%, but to no less than EUR0.25 (US$0.31) per kilogramme. The duty for pork imports beyond quotas decreased to 65% from 75% but to no less than EUR1.5 (US$1.88) per kilogramme. Pork import quotas are to be fully abolished in 2020.

The duty for pig imports fell to 5% from 40% to a minimum of EUR0.5 (US$0.63) per kilogramme.

"There will be no significant short-term price changes," Kovalyov said. "In the mid-term - within two to five years - the price will gradually fall. Pork prices will slowly decline and approach the same levels as poultry prices," he added.

Kovalyov said that Russia's pork consumption annually grows by 3-5%. The same level of growth is expected for the next several years, he said.