October 10, 2024

Russia to end duty-free quota on poultry imports by 2025

In a major policy shift, Russia announced the cancellation of its duty-free quota on poultry imports starting in 2025.

This decision marks a departure from the current system, which allows for the importation of poultry meat without tariffs under a specific quota. The move is expected to have wide-ranging implications for both domestic and international poultry markets.

For several years, the duty-free quota system helps to stabilise domestic prices and ensure a steady supply of poultry products. In 2023, the Russian government introduced a 140,000-tonne tariff quota allowing for duty-free importation of chicken meat, which was in effect throughout 2024. This measure was aimed at increasing domestic supply and controlling food inflation, especially in the wake of the COVID-19 pandemic and rising global food prices.

The decision to cancel the duty-free quota is driven by several factors.

Firstly, the Russian government aims to bolster its domestic poultry industry, which has faced challenges such as outbreaks of bird flu and fluctuating production levels. By removing the duty-free quota, the government hopes to encourage local producers to increase their output and reduce dependency on imports.

Secondly, the move is part of a broader strategy to enhance food security and self-sufficiency. Russia has been striving to reduce its reliance on imported food products, and this policy change aligns with that goal. The government believes that supporting domestic poultry producers will lead to a more resilient and sustainable food supply chain.

However, consumers may also experience short-term price increases as the market adjusts to the new policy. However, the government expects that in the long run, increased domestic production will stabilise prices and ensure a reliable supply of poultry products.

The cancellation of the duty-free quota will also affect international poultry exporters, particularly those from countries like Brazil, which have been major suppliers to the Russian market. Exporters will face higher tariffs, making their products less competitive compared to locally produced poultry.

- aviNews