No Quick Recovery for Russia' Livestock Sector

August 18, 1999

Russia's troubled livestock sector is not expected to recover soon, according to a U.S. attache report from Moscow. Despite higher demand for domestic products, overall meat production still declined last year.

Low grain stocks are expected to lead to further declines in livestock numbers next year; the number of cattle is expected to decline to 26.6 million, and the number of hogs should decline to 16 million head. As a result of low production and low meat stocks during the next decade, imported meat, including poultry, should continue to represent a high percentage of meat consumed in Russia, the report says.

The major factor limiting meat production is low feed grain stocks. Total beef production declined 9% to 1.9 million tons between 1998 and 1999. Annual hog production declined 9% in 1997 and 4% in 1998. Hogs should decline only 1% this year.

Red meat imports declined by 4% in 1998 from 1997 as a result of the financial crisis, the report says. Commercial imports of meat recovered somewhat compared to the period immediately following the financial crisis when the buying power of many Russians plummeted because of devaluation and inflation.

The entire report is available from the Foreign Agricultural Service on the USDA web site at http://www.usda.gov.