Russia could lose status as a major meat importer
According to official statistics, Russia has imported 1.25m tonnes (t) of meat in the first nine months of 2013, which is 13.2% lower than the same period in 2012. Beef imports decreased by 16.2% year-on-year to 431,100t, pork imports dropped by 15.2%, to 479,300t and poultry meat fell by 5.7% to 343,100t.
At the same time, representatives from the country’s Ministry of Agriculture noted that, in the first nine months of this year, the country’s livestock and poultry production totalled 8.11mt, an increase of 6% over 2012 levels.
“At present, Russia is implementing a series of major meat production projects, which will allow us to reach 90-95% self-sufficiency by 2020. So if current trends in industry continue, then by 2020 we could reduce imports by about three times compared to current levels, to around 450,000t,” noted the Department of Animal Husbandry, a division of Russia’s Ministry of Agriculture.
However, officials added that while Russia may stop importing poultry and pork, it will remain dependent on beef imports. “Out of this 450,000t approximately 80% will be imports of beef,” said representatives from the Ministry.
Officials also said that the development of Russia’s beef industry was complicated by lower levels of profitability and longer payback periods compared to other meat production sectors. “To meet its beef needs, Russia would need eight to 10 large beef projects, as well as dozens of medium-sized projects in most regions of the country,” said Arkady Dvorkovich, First Deputy Prime Minister of Russia, who supervises the meat industry.
“However, compared with other industries, projects in the area of beef production are characterised by a long payback period. The implementation of a project takes about five years, and the payback period is more than a decade.”
