October 10, 2007

Russia hints it may cut dependence on food imports

The main way of curbing a new price hike on foodstuffs is to lessen dependence on imports and to boost production of these goods in the country, said Agriculture Minister Alexei Gordeyev told a news conference Tuesday ( October 9, 2007)

The minister expressed concern that Russia depends on imports for 40 percent of its meat supply and 25 percent of its milk supply.

This meant meat prices in the Russian market would be affected by price increases in world markets.

To curb high prices, Russia would ease customs duties and beef up reserves to circumspect the high charges of intermediaries, Gordeyev said.

Russia's premier held already a meeting with cabinet members on this issue and given directives, he said.

Gordeyev said Russia's government is aware of the global price hike on foods, especially grain, bakery products and dairy goods. The government would have a clear analysis of these factors, he said.