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Presence of US Pork Growing in Russia

by 5m Editor
8 January 2009, at 10:05am

US - The United States and Russia recently agreed to changes in the protocol governing trade of poultry, beef and pork.

The biggest gain for US farmers and ranchers in this new agreement is a near doubling of the country-specific tariff rate quota for US pork.

The quota had been 50,300 metric tons (110.9 million pounds) per year, but has now been increased to 100,000 metric tons (220.5 million pounds) for 2009. The trade protocol between the two countries has been in place since 2005, and the US pork quota has never exceeded 55,000 metric tons during that time. The previous high was 54,800 metric tons – about 119 million pounds - during 2006.

According to USMEF Economist Erin Daley, Russia is attempting to grow its own pork industry. But it simply doesn’t have enough domestic pork production at this time to meet its growing needs.

Ms Daley explains that the increase in the quota will help make US pork more affordable to Russia. Pork entering Russia within the quota is only subject to a 15 per cent duty, while the tariff rate for above-quota imports is increasing from 60 per cent to 75 per cent. The higher quota is especially important, because of a growing presence of US pork in Russia.