Russian meat quota unlikely to hit our exports

A DECISION by Russia to impose quotas on meat imports is not expected to have any major effect on Ireland’s export trade with the country.

A spokesman for the Department of Agriculture and Food in Dublin said yesterday that with less production likely in Germany this year, the proposed tariff restricting quota is unlikely to impact on Irish exports.

Indeed, the European Commission has indicated that the EU as a whole is sufficiently below the proposed tariff restricting quota level to prevent any trade impact from the measure.

“They are seeking a meeting with the Russian authorities to discuss, inter alia, the allocation of the proposed quotas,” he said.

Bord Bia figures show that Ireland exported 83,000 tonnes of beef valued €200 million, including export refunds, to Russia last year, as well as 11,500 tonnes of pigmeat.

Moscow has also suspended all veterinary licences for imports of beef, pork and poultry. It is also requiring importers to re-apply for the permits.

Russian officials said domestic producers had to be protected from foreign competition.

But observers said the move was more about punishing the European Union, which has imposed tough barriers to Russian wheat imports.

Irish Meat Association chief executive John Smith said he was seeking clarification regarding the position which was causing uncertainty.

He said he was also trying to assess the impact the moves might have on what is effectively Ireland’s only market outside the EU that is open for beef.

Any restrictions would not be helpful.

The beef quota set by Russia for 2003 is 337,500 tonnes and will come into effect from April 1, before increasing to 420,000 tonnes in 2004 and 2005.

Russian authorities estimate the quota will have the effect of cutting beef imports by 16%. In 2002, Russia was the principal international market open for EU beef, accounting for about 70% of all EU beef exports.

EU grain quotas, which came into force on January 1, were designed to stem a massive influx of inexpensive Russian and Ukrainian grain that destabilised the bloc’s internal grain market last year.

Just under three million tons of low and medium-quality wheat will be allowed into the EU at a low tariff of €12 a tonne, while anything above the quota incurs a €95 tariff.

Russia, which hoped to sell three million tons of grain to the EU in the 2002-2003 season, can only expect to export around 600,000 tons under the new regime.

The restrictions come as Russian agriculture begins to recover from a decade-long crisis brought on by the collapse of communism.

The past two years have seen bumper harvests and rising exports. Russia sold 12 million tons of grain abroad last year, more than double the amount in 2001.