Russia

Australian exports

Australian exports to Russia during 2008 were dominated by beef, followed by offal and sheepmeat. Australian beef exports to this market jumped to 69,763 tonnes in 2008 as a result of limited supplies out of Brazil, Argentina and Europe, in addiiton to rising demand from Russian consumers and a decreasing local beef production.

See the latest export statistics:

Russia beef statistical summary

Russia sheepmeat statistical summary

Russia offal statistical summary

Imports

In 2008, Russia imported 10% more beef and veal than in 2007, totalling nearly 0.8 million tonnes swt. Brazil is still the main supplier to this market, with more than 400,000 tonnes swt of unprocessed beef shipped in 2008, 11% less than in 2007, as a result of tight supplies during 2008. Other main suppliers of beef to Russia in 2008 were Uruguay, Paraguay and Argentina.

The US, an important supplier of beef until 2003, was banned from the market after the bovine spongiform encephalopathy (BSE) outbreaks were detected; both countries agreed to resume imports in November 2007, with an import protocol that included animal age limitation (up to 30 months) and product origin restrictions (no Mexican or Canadian beef). Trade has resumed and in 2008 the US shipped almost 19,000 tonnes of unprocessed beef to this market.

Tariff Rate quota

A Tariff Rate Quota regime (TRQ) was introduced in Russia in April 2003 for beef and pork, and since May 2003 for chicken, to curb the large volume of subsidized EU product entering the market.

It consists of a frozen beef TRQ of 450,000 tonnes and a chilled beef TRQ of 29,500 tonnes for 2009. In quota shipments incur a duty of 15%, but not less than €0.15-0.2 per kg. Out of quota imports incur a duty of 30%, but not less than €0.3 per kg. Sheepmeat, goatmeat and offal are exempt from quota restrictions and incur duties similar to the in-quota tariffs for beef.  Beef imports from CIS countries are exempt from any quota restriction.

The quotas are allocated to four different supplying groups for frozen beef – the EU, US, Paraguay and other sources (which may include countries such as Australia, Argentina, Brazil Paraguay and Mongolia, depending on the license of the importer). For chilled beef, the quota is allocated to the EU and other sources.

Meat inspection systems and market access

In 2007, Russia launched a new system of Electronic Verification for meat and poultry imports designed to detect counterfeited veterinary certificates and reduce smuggling of illegal livestock products.

This system started in 2007, with Australian red meat processors being the first to implement it. The certificates are issued by AQIS and administered by DAFF, who then send the electronic version to Russian authorities. This new verification process will be soon applied to beef, pork and poultry imports from the US, Canada and Denmark, and eventually all suppliers.

Market developments

The Russian meat market offers opportunities for Australian product in the high-end market segment, as business and tourism traveling is surging and there is increasing interest for new products.

Supplies from South America, especially Brazil are expected to continue supply the lower end of the market with competitive product, in a market dominated by price sensitive customers.