April 1 2003, 09:49 Interfax-Ukraine

Russia introduces meat quotas

Russia introduces import quotas for beef and pork to stay in effect from April 1 till December 31, 2003.

According to the decree of Russian government, import quota for beef is equal to 315,000 tonnes, for pork - to 337,500 tonnes, with 90 percent of the volume to be distributed according to historical principle (licences will be issued to companies according to their former meat import performances), 10 percent - through an auction. The auction is going to be passed on the Dutch system, which means lowering of the starting price. The tender is scheduled for May 23.

Purchases of beef within the quota will be charged with 15-percent import duty, but no less than 0.15 euro per kilo; those beyond the quota will be imposed with a 60 percent duty, but no less than 0.6 euro per kilo. Imports of pork within the quota are subject to a 15 percent duty, but no less than 0.25 euro per kilo; the imports over the quota will be charged with 90 percent duty, but no less than 1.06 euro per kilo.

According to Russia's Agriculture Minister Aleksey Gordeyev, introduction of the quotas is aimed at protection of local producers from subsidised west-origin meat imports. He expects the quotas to be able to boost domestic output of beef by 4 to 5 percent, of pork - 7 to 8 percent. He said positive dynamics had been noticed already in January this year. According to state statistics committee, sales of pigs for slaughter in that month increased 16.7 percent, those of cattle - 9.2 percent.

At the same time, General Director of Russian market research institution "the Institute for Agrarian Marketing" Yelena Tiurina thinks that situation in the market will to some extent depend on contractual price of meat the imported. "If export subsidies [in the countries, selling meat to Russia]increase, the contractual price will be lower, and our produce can lose its competitiveness", she said.