Putting U.S. pork on Russian tables
U.S. pork producers see opportunities to increase their presence in Russia, but they face plenty of competition in what's quickly becoming a crowded market.
These competitive factors are outlined in a report recently developed by the U.S. Meat Export Federation. The report, 'Russian Pork Market: Benchmarking the Competition,' was funded by the Illinois Soybean Association.
According to the report, demand in Russia for pork will rise due to an increase in disposable income and expansion of the modern retail and foodservice sectors. The biggest competitors in this market are pork producers from Brazil and the European Union. Brazil, in particular, represented 51 percent of Russia's pork imports in 2005.
Domestic pork production in Russia is also expected to grow by 21 percent over the next 10 years, while imports aren’t expected to show significant growth. 'This will create an even greater squeeze on U.S. exports to the Russian market,' the USMEF report said.
In addition, the report notes that Russian pork quotas are expected to be eliminated by 2009.
Last year, the Russian pork market was the sixth-largest market for the United States, accounting for 2.4 percent of total U.S. pork exports. These exports were valued at $72.3 million.
The USMEF report recommends that pork producers consider expanding their presence in the Russian market by providing specialty meat cuts sought after by high-end hotels and retailers.
'While the report recognizes the scale economies and labor costs associated with product customization, it suggests movement in that direction would be needed for the U.S. industry to remain competitive in the Russian market,' the USMEF said.
Putting U.S. pork on Russian tables
