Russia to avoid pork oversupply with new live pig import duties
Russia plans to avoid pork oversupply this year and to increase prices for the domestic pork through the implementation of new import duties on live pigs.
By Evegen Vorotnikov
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According to initial plans of the government, the current duty on live pigs imports will increase by 8 times up to 40% per 1 kg. Local officials are trying to close the gap in the law, which allowed imports of live pigs to Russia grow seven fold over the last several years.
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Currently the prices for the domestic pork in Russia are steadily decreasing being the main reason for huge losses of the local farmers.
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“Over the past six weeks pork prices in the country have already fallen from an average of 80 rubles (EUR 2) to 65-68 rubles (EUR 1,5)/1 kg “, said the Head of the Russian National Meat Association Sergey Yushin.
Until now the rate of duty on live pig imports to Russia was only 5% compare to duties on extra-quota pork imports which amounted to 75%.
According to the first vice-premier of Russia Viktor Zubkov, final rates on live pig imports to the country as well as other measures aimed at supporting the domestic pork industry will be approved after the meeting of the EurAsEC Interstate Council on 27 November. Most likely it will happen as early as next week.
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Moreover, Russia is planning to increase the production of the domestic pork up to 700,000 tonnes by 2012, which is 35% more than in 2008. In total, by 2012, the level of pork production in the country should reach 2.7 million tonnes.
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