World meat industry news

In 2024, the quota for preferential beef imports to Russia is planned to be extended. The corresponding draft decision of the Council of the Eurasian Economic Commission (EEC) has passed the stage of public discussion. The quota for 2024 could be 100 thousand tons - the same as this year.

This measure “is aimed at balancing the cattle meat market in the Russian Federation, as well as stabilizing prices for meat products,” according to the EEC materials.

Meat processors came up with the initiative to eliminate the import duty on beef last year, arguing that there was a shortage of domestically produced beef. In 2022, 200 thousand tons were allowed to be imported on preferential terms; this year it was reduced to 100 thousand tons.

Executive Director of the National Union of Meat Processors (NUM), Nikolai Aksenov, notes that this year, supplies of beef on preferential terms actually began only in the second half of the year, since the permitting documents were signed after the May holidays. However, meat processors expect to have time to import all 100 thousand tons. Moreover, even at the current ruble exchange rate, imported beef is cheaper than Russian beef.

“Our beef also increases in price when the exchange rate fluctuates, as foreign premixes, veterinary preparations, medicines and much more become more expensive,” says Nikolai Aksenov.

Russia purchases the cheapest parts of cattle carcasses, so some types of raw materials are profitable for import even at the current exchange rate of the ruble, confirms the head of the executive committee of the National Meat Association, Sergei Yushin. This is also influenced by price dynamics in the main exporting countries. For example, in the last week in Brazil, prices for livestock and cattle meat have seriously decreased amid falling demand. The share of buffalo meat from India, which is generally cheaper than South American beef, is also increasing in imports.

In Russia, according to Rosstat, the volume of beef production in the first half of 2023 in all categories of farms amounted to 1.1 million tons in live weight, which is 0.7% more than in the same period of 2022. At the same time, according to Sergei Yushin, the export of Russian beef has decreased slightly. Despite the favorable exchange rate for exports, high competition on the world market has had an impact, he explains. And since there is a downward trend in demand for beef, in contrast to more affordable poultry and pork, the increase in prices for beef in the country was not as large as for the same poultry meat.

NSM also advocated zeroing out duties on imported pork and poultry meat. In the summer, prices for this meat jumped to record levels. Moreover, sausage producers complained about a shortage of chicken. The import of a small volume could cover the need of processors and stabilize prices, argued the NSM. According to Nikolai Aksenov, for now this issue has been put on pause - the authorities predict that in the fall, demand from the population and the prices for meat will drop, and the problem will be solved by itself. Pork has already begun to fall in price, says Nikolai Aksenov. But prices for chicken still remain at a high level. According to the expert, duty-free import of only 4% of the total volume of poultry meat production in the country (6.5 million tons in live weight) could improve the situation.