Russian State Subsidies Flush for Promoting Genetics Trade

A Hot Tip about Processed Meat in Russia

Posted on: 8 Mar 2010

Russia is not just the world’s largest importer of meat and poultry; it’s also the world’s largest importer of animal genetics as they try to reach self-sufficiency targets. The elimination of import duties and VAT taxes for breeding stock as well as providing direct import subsidies for livestock genetics have stimulated a burst of trade as enterprises must now stock GOR-subsidized livestock and poultry infrastructure projects.

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: 2/24/2010 GAIN Report Number: RS1010 Russian Federation Post: Moscow State Subsidies Flush for Promoting Genetics Trade Report Categories: Market Development Reports Approved By: Mary Ellen Smith Prepared By: Mikhail Maksimenko and Morgan Haas Report Highlights: Russia is not just the world?s largest importer of meat and poultry; it?s also the world?s largest importer of animal genetics as they try to reach self-sufficiency targets. The elimination of import duties and VAT taxes for breeding stock as well as providing direct import subsidies for livestock genetics have stimulated a burst of trade as enterprises must now stock GOR-subsidized livestock and poultry infrastructure projects. Executive Summary: Russia is not just the world?s largest importer of meat and poultry; it?s also the world?s largest importer of animal genetics as they try to reach self-sufficiency targets. As such, the GOR continues to take active intervention measures to improve the financial incentives for Russia to increase domestic production beyond cutting meat and poultry import quotas which have already effectively raised domestic prices. The elimination of import duties and VAT taxes for breeding stock as well as providing subsidies to purchase pedigree livestock genetics will continue to stimulate trade as enterprises will need to stock newly constructed or renovated livestock and poultry infrastructure. Table 1: Russia Imports, All Types of Breeding Stock 2007 2008 2009 2009/2008 ? US$000 Vol. US$000 Vol. US$000 Vol. US$ Vol. Live Pure-Bred Breeding Cattle (HS-010210) (Volume = Head) World 200,218 74,788 202,007 57,400 173,956 47,682 -14% -17% United States 0 0 7,783 1,936 42,852 9,109 451% 371% Bovine Semen (HS-051110) (Volume = Head) World 1,156.8 677.0 2,147.4 1,522.0 2,428.8 380.0 13% -75% United States 366.4 116.0 911.3 945.0 760.5 114.0 -17% -88% Live Pure-Bred Breeding Swine (HS-010310) (Volume = Head) World 43,796 57,482 29,781 32,312 13,825 12,577 -54% -61% United States 0 0 0 0 0 0 n/a n/a Live Chicks, Weight Not Over 185 G (6.53 Oz.) (HS-010511) (Volume = 1,000) World 41,337 10,086 55,240 9,505 54,361 9,121 -2% -4% United States 75 15 252 54 0 0 -100% -100% Live Turkeys, Weight Not Over 185 G (6.53 Oz.) (HS-010512) (Volume = 1,000) World 3,290 1,111 3,273 1,051 2,893 1,092 -12% 4% United States 0 0 0 0 0 0 n/a n/a Poultry Eggs For Hatching (Excl. Turkey Or Goose) (HS-04070019)(Volume = 1,000) World 55,657 150,947 53,461 141,563 56,305 158,761 5% 12% United States 10,292 25,463 9,284 21,927 9,581 23,182 3% 6% Turkey Or Goose Eggs For Hatching (HS-04070011) (Volume = 1,000) World 3,289 2,531 4,052 2,592 5,200 3,555 28% 37% United States 0 0 0 0 0 0 n/a n/a Live Pure-Bred Breeding Sheep (HS-01041010) (Volume = Head) World 460 n/a 0 0 0 0 n/a n/a United States 0 0 0 0 0 0 n/a n/a Live Pure-Bred Breeding Goats (HS-01042010) (Volume = Head) World 418 837 182 306 0 0 -100% -100% United States 0 0 0 0 0 0 n/a n/a Pure-Bred Breeding Horses (HS-01011010) (Volume = Head) World 955 220 4,498 368 2,880 329 -36% -11% United States 490 88 1,582 232 1,412 190 -11% -18% Source: World Trade Atlas General Information: Russia remains in pursuit of self-sufficiency targets for several products, and as such, the GOR continues to take active intervention measures to improve the financial incentives for Russia to increase domestic production beyond cutting meat and poultry import quotas which have already effectively raised domestic prices. The elimination of import duties and VAT taxes for breeding stock as well as providing subsidies to purchase pedigree livestock genetics will continue to stimulate trade as enterprises will need to stock newly constructed or renovated livestock and poultry infrastructure. Federal plans have directed large state support to agriculture and livestock development. This largely started with the ?National Agricultural Priority projects? which were introduced for 2006-2008 and included purchases of cattle for breeding and high quality embryos and semen of domestic origin as well as imported ones. National Agricultural Priority projects were then substituted by Program for Agriculture and for Market Regulation for the period 2009-2012 which outlays the state plan for Russian agriculture for the period. The program is based on the Law on Development of Agriculture (see GAIN report RS-7005) that went into effect in January 2007. The program envisions raising the proportions of brood stock in the national livestock herds to 13% of bovines, 18% of swine and 11% of sheep by 2012, which is expected to "allow supply to producers of breeds adapted to local conditions and reduce production costs. Specific subsectors targeted by this program include "traditional" livestock subsectors associated with certain ethnic groups in the far north, Siberia, and far east, including reindeer, free-range horse herds, sheep, and go 1ats. Most recently, on February 1, 2010, Russian President Medvedev signed Russia?s Food Security Doctrine , and ordered the Government to prepare a proposal aimed at implementing this Doctrine by April 1, 2010. The proposal focuses on upgrading the quality of Russia?s agricultural production and the replacement of imports with domestic products. According to the Agriculture Ministry?s plans, the market share of imported meat is expected to go down from 25 percent in 2009 to 15 percent in 2012, and dairy products from 22 percent in 2009 to 10 percent in 2012. Ministry of Agriculture subsidies for agriculture in 2010 are estimated at RuR97.9 billion, down slightly from RuR99.7 billion in 2009. However, support contributed to interest rate subsidies increased 30 percent to RuR79.4 billion and should contribute to RuR400 billion in new 2010 projects, including 92 meat and poultry breeding farms in 42 regions of Russia. RuR3.7 billion will be available for the purchase of purebred breeding stock. RUR3.5 billion is targeted to support the beef cattle breeding. To direct further guidance specifically for the poultry industry, the Ministry of Agriculture also expects a poultry production development program will soon be submitted for approval. Ministry of Agriculture?s 2009 support was aimed at the new construction of 156 investment projects in livestock breeding, including 42 swine farms, 32 poultry farms and 6 projects for beef cattle production. In the first half of 2009, 85 new farms were constructed, including 31 swine farms, 37 poultry farms and 17 beef cattle farms. Many of these facilities are populated with 1 Traditionally, most Russian bovine breeds are "dual-purpose", i.e., used for production of both meat and milk. The "specialization" alluded to in the program documents refers to adoption of beef breeds, something heretofore not widely practiced in Russia. imported high quality livestock and poultry for breeding, purchases of which are supported by the GOR. Veterinary Certificates Most veterinary certificates for imports to Russia of livestock, embryos, and semen were signed in May 2008, permitting export sales to Russia. The last certificate for imports of breeding sheep and goats was signed in December 2009. Copies of the veterinary certificates can be found at the following websites: USDA Animal and Plant Health Inspection Service http://www.aphis.usda.gov/regulations/vs/iregs/animals/ Russian Federal Veterinary Service http://www.fsvps.ru/fsvps/importExport/usa/sertificates.html Policy: Policy Background Russia remains in pursuit of self-sufficiency targets for several products, and as such, the GOR continues to take active intervention measures to improve the financial incentives for Russia to increase domestic production beyond cutting meat and poultry import quotas which have already effectively raised domestic prices. The elimination of import duties and VAT taxes for breeding stock as well as providing subsidies to purchase pedigree livestock genetics will continue to stimulate trade as enterprises will need to stock newly constructed or renovated livestock and poultry infrastructure. Federal plans have directed large state support to agriculture and livestock development. This largely started with the ?National Agricultural Priority projects? which were introduced for 2006-2008 and included purchases of cattle for breeding and high quality embryos and semen of domestic origin as well as imported ones. National Agricultural Priority projects were then substituted by Program for Agriculture and for Market Regulation for the period 2009-2012 which outlays the state plan for Russian agriculture for the period. The program is based on the Law on Development of Agriculture (see GAIN report RS-7005) that went into effect in January 2007. The program envisions raising the proportions of brood stock in the national livestock herds to 13% of bovines, 18% of swine and 11% of sheep by 2012, which is expected to "allow supply to producers of breeds adapted to local conditions and reduce production costs. Specific subsectors targeted by this program include "traditional" livestock subsectors associated with certain ethnic groups in the far north, Siberia, and far east, including reindeer, free-range horse herds, sheep, and goats. [1]. In line with this law are several GOR Resolutions and Ministry of Agriculture Orders providing further direction: GOR Resolution #446 (July 14, 2007) directs implementation of the state program of agricultural development and regulation of markets for agricultural products, raw materials, and food for 2008-2012 GOR Order #1146 (July 30, 2008) on development of ?The Center of Excellence for Livestock Breeding? to form a state institution responsible for developing domestic genetics and introducing new technologies in livestock breeding Ministry of Agriculture Order #494 (November 6, 2008) on ?Development of beef cattle breeding in Russia in 2009-2012? Ministry of Agriculture Order #495 (November 6, 2008) on ?Development of dairy cattle breeding and increase of milk production in the Russian Federation in 2009-2012?; and Ministry of Agriculture Order #567 (November 30, 2009) on ?Development of pig breeding in Russia for 2010-2012? Ministry of Agriculture drafted a Resolution on ?Development of Poultry breeding? that will be considered in the first half of 2010 Most recently, on February 1, 2010, Russian President Medvedev signed Russia?s Food Security Doctrine , and ordered the Government to prepare a proposal aimed at implementing this Doctrine by April 1, 2010. The proposal focuses on upgrading the quality of Russia?s agricultural production and the replacement of imports with domestic products. According to the Agriculture Ministry?s plans, the market share of imported meat is expected to go down from 25 percent in 2009 to 15 percent in 2012, and dairy products from 22 percent in 2009 to 10 percent in 2012. Ministry of Agriculture subsidies for agriculture in 2010 are estimated at RuR97.9 billion, down slightly from RuR99.7 billion in 2009. However, support contributed to interest rate subsidies increased 30 percent to RuR79.4 billion and should contribute to RuR400 billion in new 2010 projects, including 92 meat and poultry breeding farms in 42 regions of Russia. RuR3.7 billion will be available for the purchase of purebred breeding stock. RUR3.5 billion is targeted to support the beef cattle breeding. To direct further guidance specifically for the poultry industry, the Ministry of Agriculture also expects a poultry production development program will soon be submitted for approval. Ministry of Agriculture?s 2009 support was aimed at the new construction of 156 investment projects in livestock breeding, including 42 swine farms, 32 poultry farms and 6 projects for beef cattle production. In the first half of 2009, 85 new farms were constructed, including 31 swine farms, 37 poultry farms and 17 beef cattle farms. Many of these facilities are populated with imported high quality livestock and poultry for breeding, purchases of which are supported by the GOR. In real terms, the Ministry of Finance has exempted VAT taxes for domestic and imported breeding livestock, including breeding cattle, swine, sheep and goats, and eggs for hatching. Imported livestock for breeding are exempt from import duties. Ministry of Agriculture?s support for pedigree dairy cattle results in state subsidies of RuR12-14/kg ($0.38-0.44/kg) live weight, depending on the destination region in Russia, and pedigree beef cattle may receive RuR5,000/kg ($160/kg). Russian banks are able to issue soft loans of up to 8-year terms for purchases of breeding livestock where two-thirds of the interest rate is paid by the federal budget and the remaining one-third is reimbursable from the regional budgets. Cattle Dairy Cattle On November 6, 2008, the Russian Ministry of Agriculture issued Order # 495 ?Development of dairy cattle breeding and increase of milk production in the Russian Federation in 2009-2012?. In addition to installing price controls in the dairy market, the state plan envisages developing pedigree livestock breeding by increasing the number of registered pedigree dairy cattle to 15 percent of total dairy cattle herd and purchasing 100,000 domestic and imported heifers annually through 2012. The plan also includes purchasing breeding bulls and supporting livestock breeding farms. Today, Russia has 1,200 cattle breeding farms populated with 800,000 heads of cattle. Nevertheless, according to the Ministry of Agriculture, they can not provide the dairy industry with high quality pedigree livestock. Table 2: Plan for subsidizing purchasing and management of breeding bulls Purchase of bulls Subsidies for bulls management Subsidies, total Heads RuR, mln 1,000 head RuR, mln RuR, mln 2009 100 4 1,000 100 104 2010 100 4 1,000 100 104 2011 100 4 1,000 100 104 2012 100 4 1,000 100 104 Source: Ministry of Agriculture Beef Cattle Beef production in Russia remains an offshoot of the restructuring dairy industry. Post currently estimates the beef herd still only accounts for only about 2 percent of the declining cattle herd, which means a sustainable turnaround in beef production remains 5-10 years in the distance before the dairy herd stabilizes and beef cattle represent a larger share of Russian beef production. For now, dairy cattle, particularly slaughtered calves, uncastrated dairy bulls, and culled dairy cows, will remain the primary source of domestic beef (and veal). To illustrate this fact, from January-September 2009, Russia produced only 15,300 MT of beef from beef breeds and 88,600 MT of beef from beef-dairy crosses. Annualized, these figures represent 1 percent and 9 percent of the total beef production, respectively. To turn this tide, Russia is now actively attempting to develop a commercial beef industry. Minister of Agriculture Skrynnik, speaking about the development of livestock in the country, noted in February 2010 that ?currently the production of pork and poultry is growing, with beef in short supply. ?So, - continued the Minister, - our efforts will be directed to support beef cattle breeding, and at increasing the number of beef breeding farms.? Earlier, on November 6, 2008, the Russian Ministry of Agriculture issued Order #494 ?Development of beef cattle breeding in Russia in 2009- 2012?. This order grants the beef cattle program RuR19.2 billion ($600 million) in federal funding for the development of beef cattle breeding and to increase the number of pedigree beef cattle from 142,900 head in 2007 to 500,000 head in 2012, including from 66,300 cows in 2007 to 200,000 cows in 2012, indicating a planned annual growth of 29 percent for total inventory and 25 percent for cows. In 2009, GOR budgeted RuR3.5 billion ($110 million) for 23 regional beef cattle programs to promote beef breeds. This funding was held consistent in 2010. The program envisages per cow financing of beef cattle breeding farms for cow/calf operations as well as subsidies for purchases of beef cattle heifers. According to the program, annual state subsidies per cow on cattle breeding farms are set at RuR5,000 ($160). Table 3: Russia Financing of Beef Cattle Farms for Cow/Calf Operations Breeding Reproducing Total (Seedstock) Farms (Multiplier) Farms 1,000 head RuR, mln 1,000 head RuR, mln RuR, mln 2009 27.0 135.0 31.0 140.0 275.0 2010 38.5 192.5 69.9 314.5 507.0 2011 60.0 300.0 102.4 461.0 761.0 2012 80.0 400.0 99.1 446.0 846.0 Source: Ministry of Agriculture The GOR will also allocate subsides for embryos and semen purchases. RuR9.0 million ($300,000) will be allocated for purchase 3,000 embryos annually and 15RuR million ($475,000) will be allocated to offset the cost of 500,000 doses of semen. These funds will be available annually from 2009-2012. The creation of the Russian Union of Beef Producers (Rosprog) on February 1, 2010, is one additional piece of evidence that development of the Russian beef industry is underway. The union represents 25 regions and has the support of the Ministry of Agriculture. Live Cattle, Embryo, and Semen Imports Russia is the world?s most lucrative market for pure-bred breeding cattle, accounting for 30 percent of the world import value in 2007 and 2008 and priced at an average CIF import value of $3,500/hd. In 2009, Russian imports of breeding cattle $174 million or 48,000 head, slightly down from the two previous years. While imports were down significantly for the European Union, Australia, and Canada, the United States became a major supplier (primarily shipping Holsteins) in the first full year after signing its veterinary protocol to export. The most popular breeds among Russian imports are Holstein for dairy and Angus (followed by Hereford) for beef. Considering the trade in live cattle that maintained during the economic downturn and the continued state support, access to shipping vessels will be the primary, if only constraint to duplicating or increasing imports of live cattle in 2010. Many Russian livestock breeders use bovine semen to improve their beef and dairy cattle herds. Bovine semen imports totaled $2.4 million in 2009, 13 percent more by value but 75 percent less by volume over 2008. Increased awareness of sexed semen likely contributed to these diverging figures. The biggest exporters were Canada, the United States, and Germany. Russia is not importing embryos widely. However, the Russian cattle breeders have started to introduce this technology and educate embryo transfer technology experts. Its trade has the potential to blossom as the technology presents the potential for cost savings as compared to shipping live cattle. Additionally, utilizing embryos versus semen or live cattle allows the Russians to continue utilizing their current herd of dairy cattle while still making large gains in average yields. Post estimates imports are currently at $100,000. There are a couple dominant Russian companies involved in the imports of live cattle, semen, and embryos to the Russian Federation: Rosagroleasing Agroplemsoyuz Russian Breeding Association ?Rosplem? Table 4: Russia Imports, Live Pure-Bred Breeding Cattle (HS-010210) 2007 2008 2009 2009/2008 ? US$000 Head US$000 Head US$000 Head US$ Head World 200,218 74,788 202,007 57,400 173,956 47,682 -14% -17% European Union 167,767 61,602 100,006 27,760 83,339 25,041 -17% -10% --Hungary 2,449 880 16,917 4,540 26,503 7,126 57% 57% --Netherlands 49,589 18,318 4,389 1,395 26,017 8,953 493% 542% --Germany 83,175 31,708 45,917 12,755 12,357 3,733 -73% -71% --Slovakia 0 0 0 0 8,351 2,241 n/a n/a --Austria 16,957 5,873 23,820 6,512 6,000 1,781 -75% -73% --France 9,585 2,458 1,307 324 0 0 -100% -100% --Denmark 4,624 1,827 0 0 0 0 n/a n/a United States 0 0 7,783 1,936 42,852 9,109 451% 371% Australia 14,608 8,008 41,477 14,867 31,224 9,643 -25% -35% Canada 17,693 5,114 51,674 12,293 16,001 3,739 -69% -70% Source: World Trade Atlas Table 5: Russia Imports, Bovine Semen (HS-051110) 2007 2008 2009 2009/2008 ? US$000 KG US$000 KG US$000 KG US$ KG World 1,156.8 677.0 2,147.4 1,522.0 2,428.8 380.0 13% -75% Canada 440.7 398.0 658.1 465.0 1,018.8 94.0 55% -80% United States 366.4 116.0 911.3 945.0 760.5 114.0 -17% -88% European Union 328.7 162.0 548.0 108.0 636.4 170.0 16% 57% --Germany 133.6 68.0 256.7 29.0 512.8 121.0 100% 317% --Netherlands 126.4 90.0 86.1 31.0 85.9 48.0 0% 55% --Finland 27.7 0.0 0.0 0.0 21.6 1.0 n/a n/a --Switzerland 27.0 2.0 0.0 0.0 10.0 0.0 n/a n/a --Slovakia 0.0 0.0 0.0 0.0 6.2 0.0 n/a n/a --Hungary 0.0 0.0 40.9 1.0 0.0 0.0 -100% -100% --Lithuania 14.0 2.0 55.6 7.0 0.0 0.0 -100% -100% --Denmark 0.0 0.0 102.8 40.0 0.0 0.0 -100% -100% Australia 21.0 1.0 30.0 4.0 13.0 1.0 -57% -75% Source: World Trade Atlas Swine The Russian pork industry is slowly advancing but remains heavily reliant on continued state financial support to expand further. Growth in pig stocks is largely tied to investment in construction and renovation of swine operations and more widespread use of genetic stock from Europe and Canada. From 2006 to 2008, state funding added the following annual swine capacity: 193,600 head, 810,100 head, and 894,700 head, respectfully. Part of this funding went for imports of pedigree hogs. For coordination of pork producer activity, a National Union of Swine Producers was created in June 2009. One of the main goals of the union is to develop a program of genetic improvement of the Russian swineherd. Russian pure-bred breeding swine imports fell to $13.8 million in 2009, half of the total in 2008 and a third of the total in 2007. The European Union controls three-quarters of the market while Canada supplies the remainder. The major reason for fall in imports was financial and economic crises that reduced investment in construction and renovation of swine operations and purchases of pedigree swine to populate them. The United States? only constraint to becoming a dominant supplier of live swine to Russia remains its inability to transport them through Europe. Table 6: Russia Imports, Live Pure-Bred Breeding Swine (HS-010310) 2007 2008 2009 2009/2008 ? US$000 Head US$000 Head US$000 Head US$ Head World 43,796 57,482 29,781 32,312 13,825 12,577 -54% -61% European Union 31,366 45,436 26,714 29,918 9,970 9,321 -63% -69% --Denmark 1,836 1,677 8,092 10,388 4,605 4,852 -43% -53% --France 9,567 10,330 4,278 3,875 2,114 1,477 -51% -62% --Poland 9,365 17,760 3,665 5,145 1,084 1,477 -70% -71% --Ireland 1,056 999 1,972 1,336 1,043 376 -47% -72% --Germany 2,377 4,521 3,388 4,262 535 782 -84% -82% --Czech Republic 1,112 1,387 891 724 183 69 -79% -90% --Hungary 2,028 3,052 3,716 3,552 144 54 -96% -98% --Lithuania 833 1,222 64 152 0 0 -100% -100% --United Kingdom 2,920 4,137 0 0 0 0 n/a n/a Canada 10,626 10,512 3,067 2,394 3,856 3,256 26% 36% Source: World Trade Atlas Poultry The Russian Government permanently lifted import custom tariffs for hatching eggs and grandparent and parent female chicks of fowls weighing less than 185 grams. The previous tariffs for these commodities were 5 percent for chicks and 15 percent for hatching eggs. Keeping in mind that hatching eggs and chicks are important for the quickly expanding Russian poultry and egg sector, this measure will help to decrease production costs of broilers since 20.2 percent of production stems from the cost of day old hatchlings. Russia imports of live chicks and hatching eggs are steady over the past few years and represent a $100 million market. Live poults and hatching eggs are a considerably smaller but growing market as imports totaled nearly $10 million in 2009. Considering distance constraints and cost, the United States is most competitive shipping hatching eggs. However, the United States has not yet entered the market for turkey eggs. Table 7: Russia Imports, Live Chicks (HS-010511) and Poults (HS-010512) 2007 2008 2009 2009/2008 ? US$000 1,000 US$000 1,000 US$000 1,000 US$ Vol. 010511, Chickens, Live, Weight Not Over 185 G (6.53 Oz.) World 41,337 10,086 55,240 9,505 54,361 9,121 -2% -4% European Union 40,513 9,084 54,962 9,413 54,361 9,121 -1% -3% --Hungary 5,777 1,367 16,094 3,416 18,756 3,997 17% 17% --Netherlands 9,826 2,202 12,377 2,214 12,073 2,266 -2% 2% --France 5,628 321 11,370 382 9,321 270 -18% -29% --Germany 5,822 1,285 7,130 1,380 5,586 859 -22% -38% --Denmark 8,857 2,105 3,442 789 5,005 1,125 45% 42% United States 75 15 252 54 0 0 -100% -100% Ukraine 588 940 25 39 0 0 -100% -100% 010512, Turkeys, Live, Weight Not Over 185 G (6.53 Oz.) World 3,290 1,111 3,273 1,051 2,893 1,092 -12% 4% European Union 3,290 1,111 3,273 1,051 2,893 1,092 -12% 4% --Poland 2,540 1,065 2,760 1,028 2,893 1,092 5% 6% --France 491 23 514 23 0 0 -100% -100% Source: World Trade Atlas Table 8: Russia Imports, Poultry Eggs for Hatching (HS-04070011 & HS-04070019) 2007 2008 2009 2009/2008 ? US$000 1,000 US$000 1,000 US$000 1,000 US$ Vol. 04070019, Poultry Eggs For Hatching (Excl. Turkey Or Goose) World 55,657 150,947 53,461 141,563 56,305 158,761 5% 12% European Union 37,719 104,771 39,750 109,567 45,761 132,734 15% 21% --Netherlands 22,328 58,112 25,370 67,722 26,998 75,497 6% 11% --Germany 10,902 35,399 13,587 39,861 15,405 47,501 13% 19% --Spain 2,503 5,440 101 216 1,309 4,044 1194% 1772% --Hungary 1,356 3,978 0 0 445 1,260 n/a n/a United States 10,292 25,463 9,284 21,927 9,581 23,182 3% 6% Ukraine 7,646 20,713 4,427 10,070 576 1,894 -87% -81% 04070011, Turkey Or Goose Eggs For Hatching World 3,289 2,531 4,052 2,592 5,200 3,555 28% 37% Canada 2,448 1,990 2,575 1,762 3,194 2,399 24% 36% European Union 841 541 1,478 830 2,006 1,156 36% 39% --France 841 541 1,478 830 2,006 1,156 36% 39% Source: World Trade Atlas Sheep and Goats The market for exporting live sheep and goats to Russia is small and was essentially non-existent in 2009. However, the United States will have a new opportunity to test the market in 2010 with a newly signed veterinary certificate in December 2009. Table 9: Russia Imports, Pure-Bred Sheep (HS-01041010) & Goats (HS-01042010) 2007 2008 2009 2009/2008 ? US$000 Head US$000 Head US$000 Head US$ Vol. 01041010, Pure-Bred Sheep For Breeding World 460 n/a 0 0 0 0 n/a n/a Australia 348 66 0 0 0 0 n/a n/a Kazakhstan 112 [35]* 0 0 0 0 n/a n/a 01042010, Pure-Bred Breeding Goats World 418 837 182 306 0 0 -100% -100% European Union 407 833 182 306 0 0 -100% -100% --Germany 303 500 182 306 0 0 -100% -100% --Netherlands 103 333 0 0 0 0 n/a n/a Australia 11 4 0 0 0 0 n/a n/a Source: World Trade Atlas *MT Horses Russia significantly increased imports of horses in 2008, but the economic and financial crisis negatively influenced horse trade in 2009. Prospects in 2010 will have a direct correlation with the economic recovery. The United States is the predominant supplier. Russia has been a traditional market thoroughbreds as well as standard bred horses. Table 10: Russia Imports, Pure-Bred Breeding Horses (HS-01011010) 2007 2008 2009 2009/2008 ? US$000 Head US$000 Head US$000 Head US$ Head World 955 220 4,498 368 2,880 329 -36% -11% United States 490 88 1,582 232 1,412 190 -11% -18% European Union 420 113 2,897 125 1,381 121 -52% -3% --United Kingdom 18 7 149 25 427 13 187% -48% --Ireland 17 11 724 30 416 19 -42% -37% --Italy 8 1 5 4 307 46 6443% 1050% --Germany 307 53 1,858 42 126 15 -93% -64% --France 7 4 50 8 66 14 30% 75% Source: World Trade Atlas [1] Traditionally, most Russian bovine breeds are "dual-purpose", i.e., used for production of both meat and milk. The "specialization" alluded to in the program documents refers to adoption of beef breeds, something heretofore not widely practiced in Russia. Author Defined: Other Relevant Reports: 2/11/2010 Food Security Doctrine Adopted http://gain.fas.usda.gov/Pages/Default.aspx 12/22/2009 Russian Federation, Moscow Policy and Program Announcements Russian Food Security Doctrine Reemerged http://gain.fas.usda.gov/Pages/Default.aspx 09/21/2009 Russian Federation, Moscow Livestock and products annual report Meat Consumption Falls http://gain.fas.usda.gov/Pages/Default.aspx 4/23/2009 Russian Federation Moscow Poultry and Products Import Duties on Breeding Chicks and Hatching Eggs Lifted http://gain.fas.usda.gov/Pages/Default.aspx RS8095 Russia Changes Legislation and Structure of Animal Improvement Industry http://www.fas.usda.gov/gainfiles/200812/146306807.pdf RS7051 Government Program for Agriculture and for Market Regulation 2008-2012 http://www.fas.usda.gov/gainfiles/200707/146291764.doc RS7020 Progress of the National Priority Project in Agriculture http://www.fas.usda.gov/gainfiles/200702/146280251.doc RS7005 The Law on Development of Agriculture http://www.fas.usda.gov/gainfiles/200701/146279991.doc RSRS5086 Agriculture as a "National Priority Project" http://www.fas.usda.gov/gainfiles/200512/146166439.doc
Posted: 08 March 2010

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