Russia-bound.MEXICAN BEEF
On the heels of Russian embargoes against beef and other imports from those countries applying sanctions against it, Mexican beef is back in Russia’s good books.
It is also good timing for Mexico, considering that exports last year fell 18% to 122,533 tonnes. Beef exporters want to see that number rise to 170,000 tonnes, a goal that should be more attainable as Russia looks to replace imports from the United States, the European Union, Australia, Canada and Norway,
Brazil and New Zealand are other potential suppliers for the agricultural products Russia needs, which include pork and chicken.
The Russian embargo is in retaliation for sanctions imposed against it for its interference in the affairs of neighboring Ukraine. Europe has banned companies from conducting business with some Russian banks and energy firms.
But one economist says the big loser is Russia because its domestic consumption for some of the products won’t meet the demand. More than 50% of its imports of pork, poultry and dairy products fall under the ban, which can only mean big prices to Russian consumers, says Craig Botham, an economist with Schroders, a United Kingdom investment bank.
Russia had put a ban on Mexican beef because it believed the industry was using the feed additive ractopamine, used to increase the rate of weight gain and improve feed efficiency. While Russia and China have banned it, many other countries have deemed it safe, including Mexico which, however, insists the additive is not being used here.
Mexico’s beef exports in 2013 were valued at US $675 million.
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