Russian Meat Companies to Raise Prices
Price growth will be caused by the Federal Customs Service reducing the number of customs posts passing meat to Russia.
The meat business of Russia is waiting for the final decision of the Federal Customs Service (FCS) of Russia that issued a scandalous order about reduction of customs posts supervising the import of meat into Russia. The share of foreign meat at the Russian market accounts for 40 %, Rossiiskaya Gazeta reports. The order shall enter into force on April 15, 2008.
On February 7 Rosselkhoznadzor (the Russian Federal Service for Veterinary and Phytosanitary Control) submitted a letter about suspension of the order. In its letter Rosselkhoznadzor asks the customs service to refine and adjust the document limiting the number of posts for declaring meat.
The order about reduction of the customs posts was issued on February 15, 2007 but was suspended under the pressure of the erased customs posts, Rosselkhoznadzor and meat importers. The list of customs posts admitted by the FCS includes 44 terminals every of which must be equipped with a storage. The meat importers must prepare the storages at the customs terminals and certify them in Rosselkhoznadzor till April 15, 2008. But they anticipate that measures of the FCS will lead Russia to a transport collapse and raise meat prices by 3-5%. The Federal Customs Service objects to these forecasts.
Nevertheless, it’s worth saying that the Baltic Customs Service which passes 80% of the imported meat was deprived of its six posts. A part of the terminals located in the Primorsky Krai ports was also erased from the FCS list. The Primorye ports pass 10% of the imported meat.
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