European poultry exporters face an "uncertain" future in trade in Russia, their biggest market, thanks to the country's attempts to become self-sufficient in poultry products.
European Union poultry processors are "moderately optimistic" about raising exports to Russia this year, after disruption in 2009 caused by a range of trade curbs.
Russia's overall poultry imports slumped by 38% in the first half of 2009 as measures including quota reductions and fresh sanitary measures compounded the impact of financial hiccups among merchants and a weaker rouble.
However, the revival in EU trade may prove short lived if Russia makes headway in a campaign to ramp up domestic meat production, a report from US Department of Agriculture staff in Paris said.
Quota cuts
"On the longer term, these exports are uncertain," the briefing said.
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EU poultry dynamics, 2010 (year-on-year change)
Production: 8.70m tonnes (+40,000 tonnes)
Imports: 720,000 tonnes (+10,000 tonnes)
Exports: 770,000 tonnes (-7,000 tonnes)
Consumption within EU: 8.65m tonnes (+57,000 tonnes)
Source: USDA attache report |
"Russia is systematically decreasing meat import quotas from year to year and openly vows its goal is to reach self-supply sufficiency in 2012 or about [then]."
Moscow last year cut the quota for EU broiler imports by nearly one quarter to 185,800 tonnes.
While leaving some headroom above imports, which totalled 144,000 tonnes in 2008, the cut was viewed in Europe as limiting potential for growth and as a warning shot of further reductions to come.
Russia has historically accounted for about 20% of EU broiler exports, ahead of Saudi Arabia, Hong Kong and Benin.
China threat
Nonetheless, for now Europe's poultry production, which is centred in the UK, looks set to enjoy a further increase in profitability, helped by lower grain prices.
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EU's top broiler producers, 2010 (year-on-year change)
1: UK, 1.22m tonnes (+4,000 tonnes)
2: Benelux, 1.13m tonnes (-20,000 tonnes)
3: Spain, 1.07m tonnes (-2,000 tonnes)
4: France, 950,000 tonnes (+10,000 tonnes)
5: Poland, 815,000 tonnes (+30,000 tonnes)
Source: USDA attache report |
The report also flagged efforts by the European Commission to close a loophole in import rules which have allowed poultry products filled out with non-meat products to enjoy low tariffs.
However, Chinese imports, while still at a low level, represent a growing threat to the market and "should be watched closely".
"Imports of preserved and cooked broiler meat from China, which were non-existent before, reached close to 3,800 tonnes in 2009," the briefing said.
"Some analysts believe [they] could reach 10,000 tones in 2010."