December 12, 2005

Russia's January-October poultry imports up 27.5 percent

Russia's poultry imports increased 27.5 percent on the year to 1.056 million tonnes in January-October, the Federal Customs Service said Friday. Russia imported all poultry from outside the Commonwealth of Independent States (CIS).

Russia has been posting strong import levels since March after relatively slow imports in January-February, due to the government's delay in setting the 2005 quota and the late issuance of import licenses to individual companies.

Russia initially set the import quota for this year at 1.05 million tonnes, unchanged on the year, but then raised the quota to 1.09 million tonnes. Poultry imports cannot exceed the quota.

The cost of Russia's poultry imports amounted to US$676.2 million in the first ten months of the year, up from US$498 million in the same period last year. The value of imports rose steeper than the volume due to increased prices.

In 2004, Russia's poultry imports from outside the CIS decreased 7.4 percent on the year to 1.101 million tonnes. Imports from the CIS last year amounted to a mere 100 tonnes.

Strong poultry imports are being supported by increased domestic prices, which will also favour domestic production increases, analysts say. The USDA forecasts Russia's poultry imports at around 1.04 million tonnes this year, or 8.3 percent more than in 2004.

At the start of this year, the USDA projected Russian poultry imports at 960,000 tonnes.