Brazil hopes to increase chicken exports to Russia

 

 

Brazil is hoping that Russia lowers its tariffs on chicken imports and will likely get an answer to that question soon, the president of the Brazilian Association of Chicken Producers and Exporters said Monday (April 20).

 

The president of ABEF, Brazilian Association of Chicken Producers and Exporters, Francisco Turra, met with the Russian National Meat Association director Sergei Yashin on Monday to discuss increasing chicken sales and reducing a burdensome tariff of 95 percent compared to the 65 percent extra per-tonne charge last year, the trade group said.

 

"Brazilian chicken exporters are asking only to compete on equal grounds with other market players," Turra said in a press release.

 

The Russian government currently imports chicken from various markets. Each one has a specific quota to fill for free entry into Russia. Above that, exporters have to pay a tariff. That tariff, Turra said, has proven to be unfavourable for Brazilian exporters. Moreover, Russia tightened its purse strings this year due to recession and is buying less meats.

 

Brazil exported more than 57 percent less chicken-meat products to Russia in the January to March period.

 

Brazil is a major meat exporter, and Russia's top Brazilian imports are all commodities, be it beef, sugar, pork or poultry. Chicken exports have collapsed more than any of them this year, and ABEF blames that on higher tariffs that make Brazilian chicken more costly.

 

In 2009, the Russians lowered their poultry imports from 1.2 million tonnes to just under 1 million tonnes - 750,000 of which are allotted to the US; 185,000 to the European Union and 3,800 to Paraguay, and Brazil has to share 12,400 tonnes with the rest of the world, according to Turra's special adviser, Ricardo Santin. The global economic slowdown has hit Russia as the oil and natural gas price bubble deflated in late 2008. Russians have less purchasing power for beef or pork, but ABEF believes the amount of chicken purchased should remain the same, and is favourable to changes - seeing Brazil as having excellent conditions and market competitiveness due to lower prices.

 

"Although the geographical quota regime for imports is supposed to remain for three years, changes can start to take place this year, if Russia agrees," said Santin, adding that the Moscow meeting was a Brazilian initiative.

 

Beef and pork trade representatives were also attending the Moscow meeting.