News
19.05.2009
Russia. This Year Pork Imports May Drop to Nothing
Russia may refuse imported pork even this year, the Chairman of Russian Meat Union Board, Musheg Mamikonyan supposes. Firstly, it is linked with meat domestic production growth, and secondly, with fall of purchasing power for red meat.
Last year Russian pork production totaled to 2m tons, while the consumption was 2.75m tons. The shortage was offset by the imported meat. If the consumption is down 20%, the demand for pork will amount to 2.2m tons. Taking into consideration an 8% domestic production growth, it will be the volume Russian hog breeders will produce. Thus, we may refuse pork imports at all.
Recently the Agriculture Ministry has reported that pork production output for the first three months was up 8.2% from the same period last year. It means that notwithstanding the economic slowdown, the industry has conserved the growth rate it had reached a year before.
The main reason for development of this sector is a regular state support for hog breeding industry. Russian investments in the sector are not as generous as European ones are, but nevertheless they do have a positive impact on it.
There is another reason for the growth which consists in a steady imports substitution. At the end of the last year the authorities decided to increase import duties for inflow of out of quota pork. Pursuant to the estimates, this measure may lead to reduction of imports of this meat type by 200 thousand tons.
However, there is always a flip side of the coin. Meat consumption has dropped in Russia. Last year, Russian Meat Union forecasted red meat demand decline by 20% and meat product consumption – by 15%. Musheg Mamikonyan reported to “Rossiyskaya Gazeta” (RG) the forecast was coming true in a view of the purchasing power fall. The same data was presented to RG by the Head of the Executive Committee of National Meat Association, Sergey Yushin. Therewith, some experts suppose the thing is not only in tons but in the fact that some meat products for processing are not produced in Russia.
Musheg Mamikonyan considers that Russia shall pursue the imports substitution policy, as the domestic hog breeding gives the country food, working places, taxes and social control over rural areas.
