November 30, 2009

 

New pig import rates to prevent oversupply in Russia

 

 

Russia plans to avoid pork oversupply this year and to increase prices for the domestic pork through the implementation of new import duties on live pigs.

 

According to initial plans of the government, the current duty on live pigs imports will increase by 8 times up to 40 percent per 1 kg. Local officials are trying to close the gap in the law, which allowed imports of live pigs to Russia grow seven-fold over the last several years.

 

Currently the prices for the domestic pork in Russia are steadily decreasing being the main reason for huge losses of the local farmers.

 

Head of the Russian National Meat Association Sergey Yushin says that over the past six weeks pork prices in the country have already fallen from an average of RUB80 to RUB65-RUB68 per kg.

 

Until now the rate of duty on live pig imports to Russia was only 5 percent compared to duties on extra-quota pork imports which amounted to 75 percent.

 

According to the first vice-premier of Russia Viktor Zubkov, final rates on live pig imports to the country as well as other measures aimed at supporting the domestic pork industry will be approved after the meeting of the EurAsEC Interstate Council on November 27.

 

Moreover, Russiais planning to increase the production of the domestic pork up to 700,000 tonnes by 2012, which is 35-percent more than in 2008. In total, by 2012, the level of pork production in the country should reach 2.7 million tonnes.