December 1, 2009

Russia may likely face beef supply deficit

The Russian beef industry is actively seeking significant investments for its beef industry as it is likely to face a supply shortage in the coming years, according to local media reports.

Analysts said the Russian government is still unable to meet local beef demand and continuing negotiations to increase cheap beef imports from Mongolia and other emerging nations.

Lack of modern technologies for breeding livestock and high quality forage remains the main problem for the Russian agricultural industry, experts say.

The experts also said the availability of high-quality livestock feed could stimulate the growth of livestock industry, and therefore the level of beef production, which will allow to suffice demand and probably start exports abroad.

The Russian Meat Union believes that "there are only a few companies in Russia that invest money and work with the domestic livestock sector, and their efforts are not enough to change the present situation."

Meat analysts also said the domestic livestock industry remains a risky sphere of investments, with a serious shortage of human resources.

They said that "there are no high-skilled managers, who could deal with breeding and veterinary issues of the livestock industry as well as economic problems". Moreover, the Russian banks consider the local meat industry as not the best variant for investments.