October 12, 2009

 
Russia's beef production in the first half of 2009 declined 12.9 percent on-year, as market conditions remain difficult.

In September, Russia produced 19,100 tonnes of beef, down 8.1 percent on-year, but 7.4-percent higher than in May 2009.

Low domestic beef production and persisting dependency on imports led to a steady price increase in the beef market, with the average beef price in Russia for the first half of the year increasing 20 percent on-year.

Current beef production costs in Russia totals RUB131.4 (US$4.4) per kg for premium beef and RUB109.8 (US$3.7) per kg for common varieties. Both prices, compared to January this year, rose by 60 percent.

In addition, Russia's cattle numbers are on a steady decline. Livestock breeding in the country is still less profitable than pork and poultry production due to large amounts of beef imports for the last several years.

In 2008, the share of beef imports in the market amounted to 40 percent, with more than half of all the shipments of frozen beef supplied by Brazil.