Sources: Available upon request
04 Oct 2024
Russia to cancel duty-free quota on poultry imports
In a significant policy shift, Russia has announced the cancellation of its duty-free quota on poultry imports starting in 2025. This decision marks a departure from the current system, which allows for the importation of poultry meat without tariffs under a specific quota. The move is expected to have wide-ranging implications for both domestic and international poultry markets.
In a significant policy shift, Russia has announced the cancellation of its duty-free quota on poultry imports starting in 2025. This decision marks a departure from the current system, which allows for the importation of poultry meat without tariffs under a specific quota. The move is expected to have wide-ranging implications for both domestic and international poultry markets.
Background and current policy
For several years, Russia has maintained a duty-free quota system for poultry imports to stabilize domestic prices and ensure a steady supply of poultry products. In 2023, the Russian government introduced a 140,000-tonne tariff quota allowing for duty-free importation of chicken meat, which was in effect throughout 2024. This measure was aimed at increasing domestic supply and controlling food inflation, especially in the wake of the COVID-19 pandemic and rising global food prices.
Reasons for the policy change
The decision to cancel the duty-free quota is driven by several factors. Firstly, the Russian government aims to bolster its domestic poultry industry, which has faced challenges such as outbreaks of bird flu and fluctuating production levels. By removing the duty-free quota, the government hopes to encourage local producers to increase their output and reduce dependency on imports.
Secondly, the move is part of a broader strategy to enhance food security and self-sufficiency. Russia has been striving to reduce its reliance on imported food products, and this policy change aligns with that goal. The government believes that supporting domestic poultry producers will lead to a more resilient and sustainable food supply chain.
Implications for domestic producers and consumers
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For domestic poultry producers, the cancellation of the duty-free quota presents both opportunities and challenges. On one hand, it provides an incentive to ramp up production and capture a larger share of the market. On the other hand, producers will need to invest in improving their operations to meet the increased demand and maintain competitive prices.
Consumers may experience short-term price increases as the market adjusts to the new policy. However, the government expects that in the long run, increased domestic production will stabilize prices and ensure a reliable supply of poultry products.
Impact on international trade
The cancellation of the duty-free quota will also affect international poultry exporters, particularly those from countries like Brazil, which have been major suppliers to the Russian market. Exporters will now face higher tariffs, making their products less competitive compared to locally produced poultry. This could lead to a shift in trade dynamics, with exporters seeking alternative markets and Russia potentially exploring new trade partnerships.
Conclusion
Russia’s decision to cancel the duty-free quota on poultry imports is a strategic move aimed at strengthening its domestic poultry industry and enhancing food security. While the policy change may lead to short-term market adjustments, the long-term goal is to create a more self-sufficient and resilient food supply chain. Both domestic producers and international exporters will need to adapt to the new landscape, which promises to reshape the poultry market in Russia and beyond.
