Union State Increases Meat and Dairy Quotas in 2012

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Posted on: 22 Jan 2012

Russia and Belarus agreed to the 2012 supply and demand forecast of the Union State for some agricultural products, including import quotas for dairy, meat and poultry products, and refined sugar.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Voluntary Public - Date: 12/30/2011 GAIN Report Number: RS1164 Russian Federation Post: Moscow Union State Increases Meat and Dairy Quotas in 2012 Report Categories: Livestock and Products Poultry and Products Dairy and Products Sugar Policy and Program Announcements Approved By: Morgan Haas Prepared By: Mikhail Maksimenko Report Highlights: Russia and Belarus agreed to the 2012 supply and demand forecast of the Union State for some agricultural products, including import quotas for dairy, meat and poultry products, and refined sugar. General Information: Russia and Belarus are close allies with several interstate institutions, including the Union State, which provides each other with many trade preferences; however, the most politically sensitive of which are still managed. They have a long-standing history of managing trade of dairy and sugar, and 2012 will be the second year of planned exports of meat and poultry products. Yelena Skrynnik, the Russian Agriculture Minister, noted “Forecast balances were agreed with industry associations and professional associations of the two countries and meet the interests of the national economies.” Mikhail Rusiy, the Belarus Agriculture Minister said, “The goal of the agreement is to develop the Single Economic Space and the Customs Union in order to evenly distribute exported resources, determining how much we can send to Russia and how much we may sell to third countries.” While limiting trade between Parties seems counter-intuitive to a “Single Economic Space,” the trade preferences remain significant. Meat and Poultry Quotas (in meat equivalent) Belarus’ quota to export meat and poultry products in 2012 is 270,000 MT, a significant increase over the 2011 quota of 210,000 MT. According to Respublika, the official newspaper of the Belarus Council of Ministers, 135,000 MT is beef (5,000 MT more than 2011), 20,000 MT is pork (same as 2011), 15,000 MT is poultry meat (same as 2011), and 100,000 MT is various types of delicatessen (55,000 MT more than 2011). [Note: As an example of Russian preferences provided to Belarus, Russia reduced poultry and pork tariff-rate quota import quantities from the world in 2012 and held beef quantities constant.] Russia will export 1,200 MT of meat and poultry products to Belarus in 2012, down from the 2011 quota of 1,200 MT. Table 2. Russia Imports of Beef from Belarus Jan-Oct 2010 Jan-Oct 2011 2011/10 --1,000 MT 105.7 82.5 78.1 --USD, million 380.6 412.7 108.4 --Share in total imports, % 4.8 3.6 75.0 Source: Rosstat Dairy Quotas (milk-equivalent) In 2012, Belarus receives a quota to export 3.7 million MT of dairy products to Russia, compared to 3.6 million MT. According to official’s estimates, in 2011, Belarus is on part to export 3.55 to 3.6 million MT. Belarus also agreed to plan shipments accordingly in order to maintain stable Russian prices during the summer. Russia receives a quota to export 41,000 MT of dairy products to Belarus in 2012, a small but marked increase over 40,000 MT for 2011. Table 1. Russia Imports of Dairy Products, including from Belarus Jan-Nov 2010 Jan-Nov 2011 2011/10 Dairy Butter (0405.10) 89.2 86.4 96.9 --Including from Belarus 37.3 35.6 95.4 Cheese and cottage cheese (0406) 350.3 355.6 101.5 --Including from Belarus 106.1 112.0 105.6 Dry and conc. milk (0402) 198.5 155.4 78.3 --Including from Belarus 135.3 128.2 94.8 Whole milk (0401) 154.3 165.6 107.3 --Including from Belarus 134.4 144.7 107.7 Source: Russian Union of Milk Producers Sugar Quotas In 2012, Belarus and Russia will hold constant their refined sugar export quotas at 200,000 MT and 100 MT, respectively. Table 3. Russia Imports of Refined Sugar from Belarus Jan-Oct 2010 Jan-Oct 2011 2011/10 --1,000 MT 164.4 170.4 103.6 --USD, million 120.4 144.5 120.0 --Share in total imports, % 1.5 1.3 86.7 Source: Rosstat Press-release of the Ministry of Agriculture and Food of the Republic of Belarus http://www.mshp.minsk.by/news/d385219333068d0e.html A joint meeting of the collegiums of the Russian Ministry of Agriculture and the Ministry of Agriculture and Foodstuffs of Belarus in the form of videoconference was held on November 30, 2011. Michael Rusiy, Minister of Agriculture and Food, headed the Belarus delegation and Yelena Skrynnik, Minister of Agriculture headed the Russian delegation. Supply and demand forecasts of the Union State for milk and dairy products, meat, poultry and refined sugar for 2012 were approved at the joint meeting. By December 15 of this year, it was agreed forecasts will be submitted for consideration and approval by the Council of Ministers of the Union State. In accordance with the established balance sheets for 2011, reciprocal deliveries are planned in the following amounts in 2012: 1. Milk and dairy products (milk equivalent): From the Russian Federation to the Republic of Belarus – 41,000 MT; from the Republic of Belarus to the Russian Federation – 3.7 MMT. In addition, a provision was made for the distribution of the agreed volumes of dairy products by quarter during 2012, taking into account seasonal (summer) growth of milk production in order to prevent a significant reduction in the price of dairy products delivered during this period; 2. Meat and Meat Products Exports (meat equivalent); -from Russian Federation to the Republic of Belarus - 1,200 MT -from the Republic of Belarus to the Russian Federation – 270,000 MT. 3. Sugar -From the Russian Federation to the Republic of Belarus – 100 MT; -From the Republic of Belarus to the Russian Federation – 200,000 MT. A uniform distribution of supply of sugar is envisaged on a quarterly basis, by 50,000 MT, during 2011. The volume of mutual shipments of agricultural products in 2012 will not change significantly compared with the 2011. The parties also agreed to hold meeting in the Republic of Belarus in December 2012 of Agro-Industrial Association of the Customs Union, which was established in October 2012. End of the Press-release Sources in Russian: web-site of the Ministry of Agriculture and Food of the Republic of Belarus; http://www.mshp.minsk.by/news/d385219333068d0e.html web-site of the Russian Ministry of Agriculture; http://www.mcx.ru/news/news/show/5116.78.htm An article on quotas published in the official newspaper of the Belarus Council of Ministers December 08, 2011, № 235 (5398): http://www.respublika.info/5398/selhoz/article51502/textmodestart/ Other Relevant Reports: RS 1081 Union State Agrees to Common Agricultural Policy
Posted: 22 January 2012

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