November 3, 2009
Russian meat prices to surge on tariff in New Year
The upcoming introduction of the new customs tariff between Russia, Belarus and Kazakhstan can lead to a sharp increase in meat and meat products prices in these countries, particularly in Russia, according to Russian meat industry analysts.
The import duties will take effect on January 1, 2010, and since that time all the rates will be approved by joint resolutions of the countries.
In Russia the sharpest price increase will be seen in imported mutton, lamb, rabbit meat and all kinds of sausage. In addition, the tariff will affect above-quota supplies of fresh and chilled beef. However, pork and poultry rates will not change.
The increase in beef prices was an important action for the local producers, because more expensive pork had resulted in the reduction of investment attractiveness of the Russian cattle industry, said Sergey Yushin, Head of the Executive Committee of the National Meat Association.
The average pork price in Russia is RUB80 (US$2.74) per kg, while beef is RUB50-60 (US$1.71-US$2.05).
Raising the tariffs on beef would help to match the prices, and beef should cost even more than pork in the future - as in the rest of the world, said Yushin.
US$1 = RUB29.2450 (Nov 3)
