October 20, 2014

Russia to import more Chinese pork

A serious shortage of pork has spurred Russia to open up its market to China by increasing the number of Chinese companies allowed to export pork from two to 10.

China, for its part, expressed its willingness to increase the supply of pork to Russia, according to Alexey Gruzdev, Russia's trade representative in China.

He said Russian agriculture watchdog Rosselkhoznadzor [Federal Service for Veterinary and Phytosanitary Surveillance] had already started inspections of the initial eight companies that have so far applied to supply pork.

Two firms, both belonging to the world's largest producer of pork, the WH Group, already received approval to export pork last August, and shipped their initial exports totalling 800 tonnes.

Russia received the first shipment of Chinese pork in 10 years last October 11, according to Rosselkhoznadzor. It said the exported meat was prepared, including its packaging, under the supervision of Russia's veterinary specialists.

Chinese pork export to Russia could reach from 15,000 tonnes to 25,000 tonnes this year, according to various forecasts, and more than double to 50,000 tonnes–70,000 tonnes.

Chinese pork exports represent a mere drop in the bucket as Russia used to import up to 1 million tonnes of pork from the US, EU and other countries until August 7 when it banned imports from those countries in retaliation for the Western sanctions over Russia's support for the separatist rebels in Ukraine.

"Due to the growing shortage of pork, even poultry prices are growing. People switched to cheaper proteins, which boosts both the demand and the price of meat," said Yuiry Kovalev, chairman of the Russian Union of Pig Producers.