The Ministry of Agriculture of the Russian Federation proposed measures to stabilize meat prices. The initiative of the Department is to zero import duties on frozen beef and pork under the quota of 200 thousand Mt for each type - this is how the Ministry estimated needs on meat imports per year. Now for the import of foreign products, companies pay a fee of 15% and 25%, respectively. Such a measure will slow down rising meat prices, suggests the Ministry of Agriculture. Over the year, the domestic market for beef and pork rose by 7.8 and 19%, respectively. Proposals were sent to the Ministry of Economic Development and the Government apparatus for discussion.

The Ministry of Agriculture recalled that earlier the EAEU changed the scale of tariff preferences. Therefore, since October of this year, beef importers (mainly of beef imports from Latin America and India, which last year imported 199.6 thousand Mt of frozen beef) at the entrance to the Russian Federation have lost the opportunity to receive a discount on duty. Now it is at least 15%. Without discounts, products will rise in price for Russia - such costs will increase the price tag by almost 4% to the cost of imports from far abroad. Moreover, the average world prices for this type of meat have already increased by 30% over the year, by September 2021 to $4.4.

The authors of the proposal believe that in this way there is an import of inflation, such a situation accelerates the increase in food prices in the country. " At the same time, a zero duty will increase supply on the domestic market and restrain the increase in the cost of beef and meat products that with beef content.

Meat market experts note various aspects of the proposal of the Ministry of Agriculture. On the one hand, zero duties on the import of pork can go against the strategic investment plans of producers. On the other hand, the measures proposed by the Ministry of Agriculture will help slow down price increases, which is of important social importanceе.

Source: meatinfo