October 16, 2009

Russia's beef imports during the first eight months of 2009 fell 29 percent on-year to 368,000 tonnes, while domestic beef production also registered a decline.

The decline of beef imports is due to the constrained trading conditions after 2008's financial crisis and a volatile rouble.

Local beef production during the first half of 2009 was down 13 percent on-year, much larger than the two-percent decrease forecast by the Food and Agriculture Organisation and the one-percent fall forecast by the USDA for the 2009 calendar year.

The decrease in production is in line with declining profitability in the Russian cattle and beef industry, as beef production costs have risen 60 percent during the year, while average domestic beef prices have only increased 20 percent on-year.

Brazil remains Russia's main supplier, accounting for 55 percent of total beef imports, followed by Argentina with 19 percent of the total, and Uruguay accounted for nine percent.