Meat imports to Russia plunge by 40%
The economic crisis has affected the volume of meat imports to Russia, and gives new perspectives for the development of the poultry and pigs industry of the country, according to analysts.
By Evegen Vorotnikov
The import of beef, pork and poultry meat to Russia in the period of June-July 2009 significantly declined compared to the same period in 2008.
The drop in the volume of beef imports within June-July period exceeded 40%, while pork imports 31% and poultry meat - 18%.
"In addition to the influence of seasonal factors, this trend, is linked with high transition of meat stocks at the beginning of the year, a sharp depreciation of the Russian currency, a lack of working capital for the majority of participants in foreign economic activity, inaccessible and high rates of commercial loans, the anticipated decline in demand for manufactured goods and fresh meat," claim the analysts.
In addition, it is said that the volume of meat imports to the country was affected by the financial collapse of a large number of local meat processing enterprises who are the main consumers of imported beef and pork in Russia.
Offal on the rise
At the same time, imports of pork offal and beef reflect ongoing growth in demand for cheap forms of animal protein and shift in consumer preferences. Thus, the imports of pork offal in Russia in July 2009 rose by 23% compared to the same period last year, while beef offal by almost 20%.
Currently the average prices for Russian pig for slaughter stands at the level of September 2008 and is about 80 rubles per kg live weight. (EUR 2).
The wholesale prices of imported beef in the past year have increased by 25-40% in rubles and fell to 10-14% in dollar terms.
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