Page 39 - RusRPTFeb20

month by the agriculture ministry that Russia, the world's largest wheat exporter, was looking for a new way to restrict grain exports at the level of the country's exportable surplus under "certain market conditions". The agriculture ministry's draft, which is yet to be reviewed by the government, sees the quota at 20mn tonnes of grain in January 1-June 30, 2020, it added. It previously said it expected Russia to export 45mn tonnes of grain, including 36mn tonnes of wheat, in the 2019/20 marketing season, which started on July 1, 2019 and ends on June 30, 2020. Russia exported 23.7mn tonnes of grain, including 20.6mn tonnes of wheat, between the start of the 2019/20 season on July 1 and January 10, according to customs data. Total grain exports were down 18% from a year earlier.
Russian beef exports to China allowed. ​The Russian agriculture watchdog, Rosselkhoznadzor, has reported on beef exports to be allowed to China. Currently, two producers of premium quality beef, Miratorg and Zarechnoye, are certified.​ ​The beef market in Russia is 1.6mn tonnes, representing 17% of meat consumption (after poultry (45%) and pork (35%)). The segment is less attractive for industrial producers, due to the extended paybacks and higher capex for new projects. In the beef category, 53% supplied by households and 17% covered by imports. Beef exports from Russia are a minor 9,000 tonnes, mostly into neighbouring countries, while the core competitive advantages globally are in the premium produce area.​ ​Russian producers have been allowed to export poultry to China since 2018, and the beef adds to that list. The market's core focus is on pork (which is still to be admitted), where industrial producers have robust export potential, including Rusagro's breeding complex in the Russian Far East. In 2020, $A estimates China to import 3.7mn tonnes of pork, 2.9mn tonnes of beef and 0.8mn tonnes of poultry. The admission of Russian beef producers adds to the positive sentiment on the Russian meat export story, and if pork were to be allowed that could create new growth pillars for domestic producers.
39​ RUSSIA Country Report​ February 2020 ​ ​www.intellinews.com