Will new Russian meat import quotas lead to price increases?

 

 

A new governmental decree on reduction of the Russian meat import quotas will not lead to intense growth of meat prices within the country, according to local analysts.

 

These restrictive measures will contribute to higher prices for meat, but, according to experts, price rises will be insignificant.

 

"There are no factors for a noticeable rise in prices for pork and poultry, due to the continuing active development of the Russian domestic production,'' said Sergey Yushin, head of Russia's National Meat Association.

 

''A moderate import restriction should not lead to a shortage of these types of meat. In 2010, the competition between local producers will increase, preventing further price increases," added Yushin.

 

''However, growth in producer prices, along with inflation does not mean that the local consumers are immune from price hikes in the retail trade,'' says Mikhail Popov, CEO of Ostankino Meat Processing Plant, one of Russia's largest meat producers.

 

According to the government, the amount of pork imports to Russia for 2010-11 will amount to 472,100 tonnes compared to 650,000 tonnes in 2009, while by 2012 they will be reduced to 425,000 tonnes. Poultry meat and offal quotas in 2010 will amount to 780,000 tonnes compared to 952,000 tonnes this year, while in 2011 they will be reduced up to 600,000 tonnes. Frozen beef quota is set at the level of 530,000 tonnes while fresh beef - 30,000 tonnes.