BEEF exports to Russia from all major suppliers increased considerably in June – to the highest level so far for 2009 – as the rouble regained value against the $US and trade slowly re-established.
Russia’s main beef supplier, Brazil, exported 34,137 tonnes to Russia in June, up 59pc on May, but still 6pc down on June 2008 levels.
Argentina’s June exports were stable with May volumes, with 12,546 tonnes shipped in June, but were nearly 600pc higher year-on-year as exports were curtailed this time last year due to the general agricultural strike.
Trading to Russia has fallen in recent weeks, however, with demand dropping as a result of the volatility of the rouble, which has fallen strongly against the $US.
In addition, Russia is currently in the midst of the holiday season, a time when processed meat consumption tends to decline.
Demand for Australian product remains low in Russia, as South American CIF import prices in St Petersburg are around 30pc lower for chuck and blade and are 10pc lower for thick flank/knuckle compared to Australian product.
Trimmings from Argentina were quoted at US$1,950/tonne FOB this week, while Uruguayan chuck and blade was quoted at around US$3,000/tonne (World Beef Report).
Demand from Russia is expected to increase in August, as consumers return from holidays and importers increase orders before trade disruptions return in November as ports freeze.
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