Brazilian cows caught on doping: what will happen to prices for meat in Russia

© AP Photo / Andre Ripperology farm in Brazil. Archival photoBrazilian cows caught on doping: what will happen to prices for meat in Russia© AP Photo / Andre Penner

Rosselkhoznadzor from December 1, imposes a temporary ban on meat imports from Brazil. The reason for it in that South American beef and pork discovered in Russia banned the drug ractopamine, which accelerates the growth of muscle tissue.

Moscow not for the first time introduces a ban on imports of Brazilian meat. In particular, a similar decision was taken in 2012 for the same reason — due to ractopamine. The embargo lasted until August of 2014. And now, three years later, history repeated itself.

The Brazilian share in the total volume of import in our country of meat of cattle by some estimates is about 60 percent. However, the preconditions for a sharp rise in prices there — the beef is already not available to everyone.

Therefore, the consumption of beef in Russia, as, indeed, in the world, recent years has been reduced — it is gradually displaced from the diet of cheaper pork and poultry. And these products, domestic producers are already able to almost completely cover the needs of the domestic market.

Brazil’s law enforcement officers then conducted a special operation involving thousands of security personnel to open the collusion of more than two dozen Brazilian meat companies with officials who for bribes gave out certificates of quality of a product without validating it. As a result, producers with impunity, used the chemicals, including the carcinogens, to give low-quality meat presentation and run it in the implementation.

Saudi Arabia, South Africa, Japan, Canada, Mexico, and Egypt immediately banned the import of meat and meat products from Brazil and Russia has imposed greater control over the supply.

In response to the statement reported the Minister of agriculture of Brazil Blaire Magi promised to make appropriate changes in system of deliveries of meat to Russia to eliminate the violation. According to the Russian legislation, the use of ractopamine in livestock production is prohibited, it also prohibits the import of products obtained with its use, and from other countries.

Scientists believe that this drug, once it enters the human body through meat can cause heart disease, headache, muscle spasms and high blood pressure.

At stake is not only human health, but also purely economic factors, like the head of Executive Committee of National meat Association (NMA) Sergey Yushin. «The use of this drug allows for five to seven percent reduction in the cost of beef,» — he stressed.

Kohl soon Russia ractopamine is officially banned, the domestic livestock producers are at a disadvantage. They deliberately lose Brazilian colleagues, says Yushin. Therefore, in the understanding of the interlocutor, the Rosselkhoznadzor is introducing the ban, advocates and equal competitive opportunities for all market participants.
Prices have hit the roof

Beef has now become a premium product, unavailable to many Russians, said the Deputy Director of analytical Department of company «Alpari» Natalia Milchakova. Not coincidentally, the consumption of meat of cattle in Russia is only 17-18 percent.

Low purchasing power of the population is a natural limitation to a sharp rise in prices, the analyst believes. «Price growth is above five to seven per cent after the ban on imports from Brazil are unlikely. To afford a kilo of meat at a price of 500 rubles and above may not every consumer,» said Milchakova.

The President of the Russian Meat Union Mushegh Mamikonian — his vision of the situation. He is convinced that before the end of January, prices in the meat departments of stores generally will not change. However, further growth is still possible, but not more than seven percent.

In turn, Yushin did not rule out that other countries — exporters of meat to Russia, such as Paraguay, Argentina and Uruguay, will try to take advantage of the problems of Brazil to raise prices on their products. Thus, an input constraint may create the conditions for a rise in beef prices, said the expert.

However, he believes that nothing tragic happened. The shortfall in volumes of the same beef can be fast enough to replace imports from other countries. As a potential supplier of Yushin called India, which is ready to offer Russia the meat of the Buffalo.

© RIA Novosti / Egor Rememberace in PhotobacteriumBrazilian cows caught on doping: what will happen to prices for meat in Russia© RIA Novosti / Egor Rememberace in Photobacterium
Why bird do not mind

«In the food industry in Russia and worldwide there is a trend to replace beef with cheaper poultry meat, pork or meat offal,» reminded Milchakova.

Brazilian cows caught on doping: what will happen to prices for meat in Russia© Fotolia / janecatВезут like a pig: Russia hit gray supply extension embargoe this scenario, the Russian consumer from the ban on the import of dubious quality Brazilian beef will only benefit: it is to overpay for unhealthy meat is more expensive, she said.

A similar view is shared by Mamikonyan. According to him, the country is experiencing increased consumption of pork and poultry meat. So, in 2016 the implementation of pork in Russia increased by 10 percent, and in 2017 — another five.

In addition, one should remember that pork and poultry meat is practically not risen, and inflation is legitimate to speak of lower prices, said Mamikonyan. Not casually Russian meat producers are making a choice not in favor of expensive beef. In the future this trend will remain at the market, he said.