Tariff in New Year to drive up Russian meat prices

03-11-2009 | |

According to Russian meat industry analysts, the upcoming introduction of the new customs tariff between Russia, Belarus and Kazakhstan can lead to a sharp increase in meat and meat products prices in these countries and in particular Russia.

The import duties will take effect in January 1, 2010 and since that time all the rates will be approved by joint resolutions of the countries.

In Russia the sharpest price increase will be observed in the case of imported mutton, lamb, rabbit meat and all kinds of sausage. In addition, the tariff will affect© above-quota supplies of fresh and chilled beef. However, pork and poultry rates will not change.
The increase in beef prices is an important action for the local producers, said Sergey Yushin, Head of the Executive Committee of the National Meat Association.© “Currently there is an unusual situation in the Russian meat market when pork is more expensive than beef. This has already resulted in the reduction of investment attractiveness of the Russian cattle industry,”© Yushin said.
The average pork price in Russia is 80 rubles (1.8 Euro) per 1 kg,© while beef is 50-60 rubles (1.4 Euro). According to Yushin, raising the tariffs on beef will help to match the prices and in the future, beef should cost even more than pork – as in the rest of the world.