December 13, 2006

 

Russia's meat ban fails to hurt Polish meat companies

 

 

Russia's ban on Polish meat has turned out to be a blessing in disguise for some Polish companies as they are forced to look for other markets, which are turning out to be more profitable than Russia.

 

For example, Biernacki, a unit of Polish food group Duda, Poland's largest meat exporter to Russia before the ban, used to send half its beef and pork products to Russia.

 

This year, the company expects to triple its revenues for 2006 as orders came in from South Korea, Japan, Kazakhstan and western Europe to replace those cancelled in Russia.

 

Russia banned Polish meat in November 2005, on charges that exporters have been forging Polish inspection certificates.

 

Poland says the ban is politically motivated and last month blocked talks on a new EU-Russian partnership in retaliation.

 

Before the ban, Russia was the second biggest market for Poland and accounted for about 8 percent of Polish food exports.

 

The value of Polish meat exports rose 17 percent in the first eight months of 2006, the Polish Institute of Agricultural Economics and Food Trade said.

 

Polish beef exports to western Europe, Poland's biggest meat customer, rose 43 percent year on year to 65,000 tonnes in the first six months of 2006.

 

In addition, Poland's meat prices have also been kept low due to the ban, and that has helped keep inflation under 2.5 percent.

 

Still, exporters are hoping Russia would lift its ban soon as it is still a big market and a longer absence would mean a harder fight to claw back market share.