January 27 2003, 14:19 Vedomosti

Russian government approved meat import quotas

Last week Russia's Prime Minister Mikhail Kasyanov signed a decree about quoting meat imports to Russia. Analysts expect meat prices to rise 35 percent in this year.

According the Ministry for Economic Development, importers of poultry meat will be granted this year a quota in the amount of 774,000 tonnes, including 190,000 tonnes of minced poultry meat. Poultry meat quotas for 2004 and 2005 will be 1.05 million tonnes. No poultry meat imports beyond the quota is permitted.

Quotas for pig and cattle meat for this year are 335,000 and 315,000 tonnes correspondingly. In the following two years it is permitted to import within the quota 450,000 tonnes of pork and 420,000 tonnes of beef. The beef over the quota will be charged with a 60 percent import duty, but no less than 0.6 euro per kilo. Pigmeat imported beyond the quota is a subject of 80 percent duty, but no less than 1.06 euro per kilo. Duties for pork and beef, imported within the quota will stay unchanged - 15 percent, but no less than 0.15 euro per kilo of beef and 0.25 euro per kilo of pork.

A spokesman for the ministry has told "Vedomosti" that meat import quoting will be started from April. The quotas will be distributed according to the historical principle: State Customs Committee will provide Ministry for Economic Development with the list of poultry, pig and cattle meat importers over the last three years, after which officials of the ministry will calculate average yearly amounts of imports of each company and will divide the quotas between them proportionately.

For new players in the meat market, with no "import history" there will be provided an auction. The spokesman said 10 percent of quotas for imports of both pork and beef would be put up for auction in May. The auction is supposed to be of Dutch system (for lowering).

Poultry meat quotas have been divided not only between companies, but also between producing countries. Thus, it is permitted to import this year from the US - 553,500 tonnes, from the EU - 139,900 tonnes, from Brazil - 33,300 tonnes, from China - 33,100 tonnes, from other countries - 142,000 tonnes of poultry meat.