Russia: Quota system for domestic poultry
The Russian government intends to introduce a quota system to regulate the domestic poultry market.
With the annual increase of 15-16% in poultry production by 2010, Russia’s import ratio to the domestic poultry production will be 20% to 80%, according to officials from Russia’s Agricultural Ministry.
In the future, it is reported that Russia is expected to meet 100% of the domestic demand from the national poultry production.
These plans have been sharply criticised by some Russian poultry majors. They said the regulation of the national market by the quota system is the European experience only, caused by the ecological factors.
Also, for entering into competition with Western rivals, Russia has less favourable weather conditions than, for instance, Brazil, or the US both having also a somewhat different poultry meat consumer pattern, they add.
Local producers fear that the introduction of a quota system would aggravate the situation in the market, because production levels of the Russian companies does not provide domestic food safety.
Moreover, many poultry farming investment projects have been stopped, while their future is not clear especially in the present situation amid the financial and economic crisis.
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