James O’Donnell, Director Emerging Markets, Bord Bia

Russian authorities recently announced their intention to reduce import quotas for both poultry and pork in an effort to increases price levels for domestic production.

Import quotas for pigmeat next year will amount to some 500,000t down from 650,000t in 2009. Poultry and offal quotas are expected to amount to 780,000t, down from 952,000t this year. The frozen beef quota will be around 530,000t while fresh beef will amount to 30,000t.

In addition Russia has indicated that it will increase duty levels significantly on product imported outside quota.

In a further effort to increase domestic prices, import duties on live pigs will increase eight fold, up to 40% per 1kg. In recent years strong government support has resulted in an increased level of pigmeat production with an increase of 4% estimated for 2009. The pig herd now stands over 43 million head and continues to increase.

Plans to change the mechanism for quota allocations are also in the pipeline. Traditionally quotas were allocated on a historical use basis but starting next year 30% of the quota will be put up for auction.