Processors explained the drop by the appearance on the Russian market of 200 thousand tons of imported beef. This beef was delivered at zero duty instead of the standard 15%. Deliveries were made to stabilize domestic prices for this meat.

Some farms have stopped selling animals to processors, counting on further price increases. On the other hand, some processors began to suffer losses due to the increased cost of domestic livestock and were forced to switch to cheaper imported meat.

The head of the National Meat Association, Sergei Yushin, predicts an expansion of beef supplies in the near future. He recalled that imported beef is at least a quarter cheaper than domestic. At these prices, it turned out to be unprofitable for Russian farmers to sell their livestock. In such a situation, the domestic production of this meat in the medium term may decrease, while the share of imported beef may increase. The latter is now no more than 15%. Another reason for reducing the supply of meat for slaughter, the expert called the seasonal factor. He recalled that the main slaughter takes place at the end of the third and in the fourth quarter, when the animal reaches the required weight.

According to his forecasts, the shortage of local livestock for slaughter will be observed at least until the fall of this year. The expert called the abolition of the duty-free quota for the import of 200 thousand tons of beef into the country and the transition to a flat duty as a solution to the problem.

Source: meatinfo