September 19, 2007

Rise in meat imports raises concern from Ukrainian authorities

Ukraine's meat import from Brazil and Argentina have risen 34 percent since the beginning of the year, raising concerns from authorities eager to cut down on the country's reliance on meat imports.

The issue is particularly vexing for authorities since it has banned meat import on a give-and-take basis in April. This form of exchange meant that every import has to be offset by exports. This form of exchange accounts for 50 percent of the country's meat imports.

The State Committee of Statistics notifies that 20,000 tonnes of frozen and chilled meat were imported between January and June of 2007. Average cost of this food declared by importers at Ukraine's border was UAH 4.5 (US$ 0.9) per one kilogram, many times less than what is sold in Ukraine's markets. 

Representatives from local meat companies say that import meat is so cheap because it is tax-free and the customs clearance procedure is not fully observed. The freshness of such meat is also in doubt.

Deputy Minister of the Agrarian Minister, Petro Verbytsky, claims that several companies have violated the ban on importing meat on a give-and-take basis.

Brazilian or Argentinean meat is used mainly for production of semi-finished foods and are not sold in markets.