September 16, 2008

Beef demand in Russia sharply declines

Russian beef prices are falling due to a backlog of product, high volumes shipped from Brazil in recent months, the depreciation of the ruble against US and subdued interest from Russian buyers, Meat and Livestock Australia said.

Despite expectations that Russian demand was going to pick up in September following the seasonally low beef consumption period over summer, and before many northern ports freeze, there is speculation that demand will remain flat for at least the next month.

Russia emerged as Australia's 4th largest beef market this year, taking 61,405 tonnes during the calendar year to August, of which 7,567 tonnes was exported in August.