Big rise in Russian meat imports

Published on Thursday 24 July 2008 21:56

THE Russian economy is booming, and little wonder, given the fact that the country holds vast reserves of oil and gas. Living standards, especially in the major cities, are also increasing with consumers demanding more meat than in former times.

However, Russian farming is still recovering from the inefficiencies of the Soviet era and Stalin's collectivisation of most of the productive land.

Accordingly, imports of meat into Russia have soared over the past 18 months. The latest figures from the Customs Committee of Russia reveal that in the first quarter of this year imports of pork, both in fresh and frozen form, jumped from 108,900 tonnes in the first three months of 2007 to 152,600 tonnes.

Imports from the EU more than doubled from 24,700 tonnes to 53,700 tonnes, despite that the authorities in Moscow having banned the sourcing of meat from 85 plants, mostly in the former Soviet bloc, on grounds of hygiene.

The principal winners in this upsurge of trade have been Denmark and Germany, which both saw their market share more than double to over 27,000 tonnes. In addition the US saw its market share rise from 10,600 tonnes to 33,000 tonnes while Canadian imports of pig meat increased from 13,600 tonnes to just over 20,000 tonnes. However, Russian trade with Brazil slipped back from 59,400 tonnes to 44,900 tonnes.

Pig producers throughout much of the EU have had a tough time over the last 18 months as a result of a near doubling of feed costs. Sow numbers have fallen in all of the major pig producing countries, but current prices for finished pigs are now running well ahead of 12 months ago. In Denmark bacon pigs are now making over 13 per cent more than last July while in Germany the value of cull sows at the end of their breeding life has jumped by over 40 per cent.

There is no direct trade link between the UK and Russia, but there are clear signs that the upsurge in pig values on mainland Europe is beginning to filter back across the Channel.

Russia also imports a considerable quantity of beef, but here the increase has been less pronounced. In the first three months of this year Russia imported 144,300 tonnes of beef – an increase of just under 4,000 tonnes compared to the corresponding period last year. Brazil was the major supplier with 74,300 tonnes, but this was down by 10,000 tonnes. The EU increased its exports from 6,200 tonnes to 8,100 tonnes.