Russia: Decreasing import and rising prices
Starting from February, 2013 import of pork into Russia has being decreasing as compared with the same term of last year.
In August of 2012 after Russian joining to the World Trade Organization import duties on meat were reduced. That’s why Russian market became more attractive for foreign suppliers. During September-December, 2012 there were delivered more than 275 000 tons of pork into Russia. This volume is 30% more than imports of the same period in 2011. Large volumes of cheap pork caused great drop in prices which in April felt to 60 rubles per kilo (-25%). Russian agricultural producers and farmers appeared in a rather difficult situation because of such reduction and rice in prices for grain.
The situation made Russian government to limit pork import. More over certain foreign companies reduced their delivers of meat themselves because of low prices in the market. As a result pork import in the first half of 2013 became 15% less than in year 2012 and made 266 000 tons.
Import decreasing has stimulated stabilization and further rise in pork prices. As for the 20th of July price of pork in live weight has increased by 12% to 67.2 rubles per kilo as compared with the lowest costs in April.
According to the forecast it is worth to expect slow growth of prices and its stabilization to the end of the year. Russian pork market is saturated now thanks to activities of domestic producers. This circumstance will influence the price in spite of imports limits.
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