Russia extends EU food embargo

Russia extends EU food embargo

Russian manufacturers have invested heavily in new technologies and capacities in recent years, so the pace of growth in the country’s meat industry almost exceeded the world average rate during a number of years prior to introduction of these counter measures. The food embargo had almost no effect on the beef sector, as roughly 95% of import supplies were accounted for by countries which not subject to the sanctions. So, at the time when the counter measures were put in place, the domestic market had already got used to the absence of European pigmeat. The only noticeable effect was that Canada lost the ability to make deliveries, but those have been replaced successfully by Brazilian meat exporters. Also in late 2014 and early 2015, Russia authorised four Chinese pig producers to export to the country, as some importers lost access, but others were granted permission to start deliveries.  Lifting the food embargo now would mean disrupting, to some extent, the positive development trend in the domestic meat industry, as it would cause a rise in the imports of cheap meat for the meat processing sector and there could be an oversupply of expensive domestic meat in the market and the local producers would need to reduce prices, which could lead to bankruptcies. Now it seems to be critical to keep imports and maintaining domestic production and implementing all the investment projects initiated in the domestic livestock sector are waiting until new volumes start to enter not only the domestic market.