Beef Downward pressure on prices
The feature article for this quarterly focuses on Russia and its role in the global beef trade complex. Until recently, Russia used to be a dominant player in the global beef trade complex, however, geopolitical events and a depreciating currency has seen it withdraw from global trade.
Despite Russia’s focus on developing its domestic beef industry, a contraction in the dairy herd and withdrawal from global beef trade has resulted in a shortage of beef and a rise in domestic beef prices.
According to Angus Gidley-Baird, Senior Analyst Animal Proteins: "Russian beef imports have the potential to return to pre-2015 levels if import bans are removed, the oil price recovers, and the rouble regains strength. However, with import bans recently extended to the end of 2017, and with the continuing bleak economic outlook, beef imports into Russia are not expected to change in the coming years."