Meat exporters counting on Russia

Alan Heath
16-01-2002, 00:00

The attention of meat producers has for a long time been placed on hopes of a revival of the Russian market.

These hopes have been somewhat dashed not only by the barriers of customs, duties and red tape but also that of competition from the EU which is considered to be increasingly unfair. The western concerns entered during the crisis and have taken over a large slice of the market that was once Polish.

Polish concerns are requesting government intervention in order to weaken PLN, change VAT regulations and subsidise exports to the same extent as the EU does. Poland currently has large reserves of meat. In order to keep one ton of pork for one year around USD400 is required. Storage is therefore an expensive option and Russia could provide a good market for this meat. Poland currently exports USD27m worth of meat to Russia. The sector hopes to see double this sum in 2002 and increase this to USD150m — USD200m in time.

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