Russia Signals Intention to Cut Pork and Poultry Import Quotas

Russia Signals Intention to Cut Pork and Poultry Import Quotas

Russian pork imports already exceed quotas

Russian Agriculture Minister Alexey Gordeyev today announced that Russia's import quotas for pork and poultry will be cut by "hundreds of thousands of metric tons.”

Gordeyev indicated that Russia’s domestic pork and poultry industries were developing fast and it was time to reduce imports, which have been on the rise.   The agriculture minister added that Russia's international agreements regulating the import of pork and poultry were signed more than three years ago and no longer reflect Russian interests.  The quotas were set to expire in 2009.

The Russian government reportedly is preparing to increase agriculture financing in 2009 through 2012, with more than $800 million (21 billion rubles) per year allocated from the federal budget, including more than $150 million (4 billion rubles) for subsidies to the meat and poultry industry.

Russia emerged as a leading market for U.S. pork and pork variety meat exports in 2008.   Through the first six months of this year, Russia imported 93,531 metric tons (206.2 million pounds) of U.S. pork valued at more than $197 million – an increase of 137 percent in volume and 144 percent in value over the first half of 2007.  U.S. pork muscle cut exports were up 143 percent to 75,730 metric tons (166.9 million pounds).

The effect of a Russian cut in import quotas remains to be seen.  Exports from the United States have already surpassed the country-specific tariff-rate quota (TRQ) of 49,800 metric tons (109.8 million pounds).  In-quota pork exports are subject to a 15 percent duty compared to 60 percent paid on out-of-quota exports. The quotas only apply to muscle cuts, not variety meats, which enter at 15 percent duty.

Overall, pork exports from the European Union (EU) have increased as well, more than offsetting the decline in exports from Brazil (down 12.5 percent through May). Exports from the EU are already nearing their TRQ of 249,000 metric tons (548.9 million pounds).  During the first half of the year, roughly 50 percent of Russia’s pork imports came from the EU, 25 percent from Brazil, 20 percent from the United States and 7 percent from Canada.  

Only the EU and United States have country-specific TRQs.  Brazil and Canada share the “third-country” TRQ of 193,400 metric tons (426.4 million pounds).   Last year, Russia imported more than 40 percent of its pork outside quotas, with imports totaling 688,000 metric tons (1.5 billion pounds), exceeding quota allocations of 483,800 metric tons (1.1 billion pounds).

Seng Featured on KBUF's AgriBusiness Today

On August 26, USMEF President and CEO Philip Seng was the featured guest on KBUF Radio's live AgriBusiness Today program. Farm Director and program host Lory Williams discussed the latest beef and pork export results with Seng, as well as the return of U.S. beef to South Korea and the successful partnerships USMEF enjoys with Kansas farm organizations such as the Kansas Corn Commission, Kansas Farm Bureau, Kansas Beef Council and Kansas Pork Producers Council.

Interview link (the interview runs 20 minutes in length):

Originating from the Western Kansas Broadcast Center in Garden City, Kan., KBUF is the flagship station of the AgriBusiness Network - an information network of radio stations dedicated to agriculture, covering portions of five states in the High Plains region. AgriBusiness Today airs live daily at 7:30 a.m. Central time.

Pork Trade Lead

The WJ International Group, a manufacturer of traditional Chinese meatballs, contacted USMEF looking for a long-term U.S. pork supplier. Contact:

Chris
(949) 500-6886
chrislian6@yahoo.com

 

Russia Signals Intention to Cut Pork and Poultry Import Quotas

Russian pork imports already exceed quotas

Russian Agriculture Minister Alexey Gordeyev today announced that Russia's import quotas for pork and poultry will be cut by "hundreds of thousands of metric tons.”

Gordeyev indicated that Russia’s domestic pork and poultry industries were developing fast and it was time to reduce imports, which have been on the rise.   The agriculture minister added that Russia's international agreements regulating the import of pork and poultry were signed more than three years ago and no longer reflect Russian interests.  The quotas were set to expire in 2009.

The Russian government reportedly is preparing to increase agriculture financing in 2009 through 2012, with more than $800 million (21 billion rubles) per year allocated from the federal budget, including more than $150 million (4 billion rubles) for subsidies to the meat and poultry industry.

Russia emerged as a leading market for U.S. pork and pork variety meat exports in 2008.   Through the first six months of this year, Russia imported 93,531 metric tons (206.2 million pounds) of U.S. pork valued at more than $197 million – an increase of 137 percent in volume and 144 percent in value over the first half of 2007.  U.S. pork muscle cut exports were up 143 percent to 75,730 metric tons (166.9 million pounds).

The effect of a Russian cut in import quotas remains to be seen.  Exports from the United States have already surpassed the country-specific tariff-rate quota (TRQ) of 49,800 metric tons (109.8 million pounds).  In-quota pork exports are subject to a 15 percent duty compared to 60 percent paid on out-of-quota exports. The quotas only apply to muscle cuts, not variety meats, which enter at 15 percent duty.

Overall, pork exports from the European Union (EU) have increased as well, more than offsetting the decline in exports from Brazil (down 12.5 percent through May). Exports from the EU are already nearing their TRQ of 249,000 metric tons (548.9 million pounds).  During the first half of the year, roughly 50 percent of Russia’s pork imports came from the EU, 25 percent from Brazil, 20 percent from the United States and 7 percent from Canada.  

Only the EU and United States have country-specific TRQs.  Brazil and Canada share the “third-country” TRQ of 193,400 metric tons (426.4 million pounds).   Last year, Russia imported more than 40 percent of its pork outside quotas, with imports totaling 688,000 metric tons (1.5 billion pounds), exceeding quota allocations of 483,800 metric tons (1.1 billion pounds).

Seng Featured on KBUF's AgriBusiness Today

On August 26, USMEF President and CEO Philip Seng was the featured guest on KBUF Radio's live AgriBusiness Today program. Farm Director and program host Lory Williams discussed the latest beef and pork export results with Seng, as well as the return of U.S. beef to South Korea and the successful partnerships USMEF enjoys with Kansas farm organizations such as the Kansas Corn Commission, Kansas Farm Bureau, Kansas Beef Council and Kansas Pork Producers Council.

Interview link (the interview runs 20 minutes in length):

Originating from the Western Kansas Broadcast Center in Garden City, Kan., KBUF is the flagship station of the AgriBusiness Network - an information network of radio stations dedicated to agriculture, covering portions of five states in the High Plains region. AgriBusiness Today airs live daily at 7:30 a.m. Central time.

Pork Trade Lead

The WJ International Group, a manufacturer of traditional Chinese meatballs, contacted USMEF looking for a long-term U.S. pork supplier. Contact:

Chris
(949) 500-6886
chrislian6@yahoo.com