Meat producers are struggling in the midst of Russia’s economic crisis as hard-pressed consumers cut back on luxury beef and pork in favour of cheaper alternatives, like turkey.
Trade restrictions on meat imports, put in place by the Russian government last week, should have a positive impact on the domestic meat industry, according to representatives of the Russian meat industry.
Ukrainian holding company Conti is planning to construct a large number of pig farms in the Kursk Oblast region of Russia, with the capacity for 100,000t-150,000t of carcases per year, costing approximately US$1bn.
Drought in Russia has led to a catastrophic loss of grain, which is threatening to cause a deficiency in feed resources and a rise in prices for all types of meat this autumn.
Russian pig farmers estimate that accession to the World Trade Organization (WTO) will cost the pork industry US$68.9m a year, as the country starts cutting Customs duties for pig and pork imports.
Russian authorities have defended their decision to temporarily restrict imports of cattle from Britain, Germany, the Netherlands, Belgium and France from February 1 over the Schmallenberg virus, and warn a meat ban may follow.
