August 27, 2008

US beef variety meats such as liver have always been popular in Russia, but muscle cuts are gaining popularity among Russians as the country becomes wealthier and demand grows.

From January to August 14, 2008, Russia imported 10,788 tonnes of muscle cuts compared with just 416 tonnes in the same period in 2003, according to the weekly export data by the Foreign Agricultural Service (FAS). The imports do not include Russia's favourite variety meats like liver.

The US Meat Export Federation (USMEF) estimated this year's beef exports to Russia would comprise of 6,500 tonnes of muscle cuts and 28,000 tonnes of variety meats, mostly livers.

However, FAS' report showed that shipments of muscle cuts far exceeded that projection. Weekly volumes for livers were unavailable but they still account for most of US beef exports to Russia.

Russia is buying a lot of round and chuck cuts as well as trimmings, most of which would be going into the processing industry, USMEF economist Erin Daley said.

Russia's meat output rose soared 13.4 percent to 1.6 million tonnes from January to July 2008, but Russian beef production is falling, Daley said.

"US beef prices have benefited from the relatively weak dollar, but tight global beef supplies have also helped to narrow the gap between US prices and the other major suppliers," Daley added.