Audio: Strong Demand for U.S. Meat in Russia, but Challenges Remain
Published: Oct 30, 2012
Thad Lively, USMEF senior vice president for trade access, recently returned from Russia, where he attended the World Food Moscow food exhibition and met with trade officials and meat industry leaders to discuss the current business climate for U.S. pork and beef.
Lively says Russia’s demand for U.S. meat is very strong, as indicated by this year’s export statistics: Through August, U.S. beef exports to Russia were 8 percent ahead of last year’s record pace in volume (nearly 117 million pounds) and 31 percent higher in value ($214 million). Pork exports were 30 percent higher than a year ago in volume (140.4 million pounds) and up 22 percent in value ($183 million).
Russia has invested heavily in its pork industry, with the stated objective of reaching self-sufficiency in pork production in the near future. But Lively notes that controlling African swine fever (ASF) is one of many challenges making this an elusive goal.
Lively adds that Russia made significant market access concessions for U.S. beef and pork as part of its negotiations to join the World Trade Organization (WTO), including a larger tariff rate quota for U.S. beef muscle cuts and reduced duty rates for pork imports. But he says WTO membership has not eliminated all barriers facing U.S. meat as it enters Russia, so significant work continues on approval of U.S. processing plants, consistent application of veterinary standards and other key issues.
TRANSCRIPT
Joe Schuele: This is Joe Schuele with the U.S. Meat Export Federation Report. Thad Lively, USMEF Senior Vice President for Trade Access, recently returned from Russia, where he attended the World Food Moscow food exhibition. He discusses the current business climate in Russia for U.S. beef and pork.
Thad Lively: It’s been a good year for us with both beef and pork exports to Russia, and I’d say the atmosphere at the World Food Show, for example, is very positive, very energetic, lots of business being done around the USMEF stand at the show. Great deal of interest being shown by our customers, the importers there, I would say our position in the market there is as good as I’ve seen it for several years.
Joe Schuele: Russia has set aggressive targets for achieving self-sufficiency in pork production, but they are finding these goals allusive.
Thad Lively: This year, pork production in Russia today that’s coming from modern production units is considerable higher than it was even just four/five years ago. So, on the one hand they’ve made pretty good strides, but the biggest challenge they face towards meeting those self-sufficiency goals, is controlling African Swine Fever. Over time, what we’ve seen is that rather than bring the spread of this disease under control, it’s actually spreading further. And of considerable concern, alarm in fact, you could say, to a lot of the people who have made these investments in recent years in swine production. So, until they can figure out how to manage this particular problem, their ability to meet self-sufficiency targets is going to be greatly limited.
Joe Schuele: Lively notes that Russia’s membership in the World Trade Organization has improved market access for U.S. beef and pork. But, not all challenges have been eliminated.
Thad Lively: I would say that’s something of a mix bag. Russia shows all signs of following through on the commitments it’s made, which, as far as we’re concerned, are quite significant for both beef and pork. But, where we have a lot of concern, frankly, is in the whole area of veterinarian controls; we’ve had trouble with Russians trying to keep plants approved and just maintain a modicum of access to the market at times.
Joe Schuele: For more on this and other trade issues, please visit USMEF.org.
Lively says Russia’s demand for U.S. meat is very strong, as indicated by this year’s export statistics: Through August, U.S. beef exports to Russia were 8 percent ahead of last year’s record pace in volume (nearly 117 million pounds) and 31 percent higher in value ($214 million). Pork exports were 30 percent higher than a year ago in volume (140.4 million pounds) and up 22 percent in value ($183 million).
Russia has invested heavily in its pork industry, with the stated objective of reaching self-sufficiency in pork production in the near future. But Lively notes that controlling African swine fever (ASF) is one of many challenges making this an elusive goal.
Lively adds that Russia made significant market access concessions for U.S. beef and pork as part of its negotiations to join the World Trade Organization (WTO), including a larger tariff rate quota for U.S. beef muscle cuts and reduced duty rates for pork imports. But he says WTO membership has not eliminated all barriers facing U.S. meat as it enters Russia, so significant work continues on approval of U.S. processing plants, consistent application of veterinary standards and other key issues.
TRANSCRIPT
Joe Schuele: This is Joe Schuele with the U.S. Meat Export Federation Report. Thad Lively, USMEF Senior Vice President for Trade Access, recently returned from Russia, where he attended the World Food Moscow food exhibition. He discusses the current business climate in Russia for U.S. beef and pork.
Thad Lively: It’s been a good year for us with both beef and pork exports to Russia, and I’d say the atmosphere at the World Food Show, for example, is very positive, very energetic, lots of business being done around the USMEF stand at the show. Great deal of interest being shown by our customers, the importers there, I would say our position in the market there is as good as I’ve seen it for several years.
Joe Schuele: Russia has set aggressive targets for achieving self-sufficiency in pork production, but they are finding these goals allusive.
Thad Lively: This year, pork production in Russia today that’s coming from modern production units is considerable higher than it was even just four/five years ago. So, on the one hand they’ve made pretty good strides, but the biggest challenge they face towards meeting those self-sufficiency goals, is controlling African Swine Fever. Over time, what we’ve seen is that rather than bring the spread of this disease under control, it’s actually spreading further. And of considerable concern, alarm in fact, you could say, to a lot of the people who have made these investments in recent years in swine production. So, until they can figure out how to manage this particular problem, their ability to meet self-sufficiency targets is going to be greatly limited.
Joe Schuele: Lively notes that Russia’s membership in the World Trade Organization has improved market access for U.S. beef and pork. But, not all challenges have been eliminated.
Thad Lively: I would say that’s something of a mix bag. Russia shows all signs of following through on the commitments it’s made, which, as far as we’re concerned, are quite significant for both beef and pork. But, where we have a lot of concern, frankly, is in the whole area of veterinarian controls; we’ve had trouble with Russians trying to keep plants approved and just maintain a modicum of access to the market at times.
Joe Schuele: For more on this and other trade issues, please visit USMEF.org.