After Russian President Vladimir Putin ordered the cabinet to impose a ban on several kinds of agricultural products imported from the countries which have introduced economic sanctions against Russia, Russian producers voiced their desire to increase production of food in order to replace banned imports. Even though almost all experts agree that it's impossible to replace foreign products with homegrown ones in a year, many believe that with enhanced state support in the future Russia will be able to substitute imported products with Russia ones.
One of the most endangered spheres of agriculture is cattle breeding. The Executive Director of the National Union of Beef Producers, Denis Cherkesov, underlines that it is the production of beef which depends on imports the most. More than 35 percent of beef consumed in Russia is imported. Belarus alone delivered 100 thousand tons of beef last year.
According to Cherkesov, when speaking about finding a substitute for imported beef one should bear in mind the distinction between dairy cattle breeding and meat cattle breeding. "Only 10 percent of meat is produced by meat cattle breeders, while 90 percent comes from dairy cattle breeding. This means that we are far behind the countries with well-developed agriculture, in which meat cattle breeding constitutes from 50 to 90 percent of the market. In the US for instance only 20 percent of all cows are raised for the production of dairy products and 80 percent for the production of meat. Our market is still developing," he said.
The expert believes that it will take from three to four years to fully implement new projects in the sphere. According to him, in order to substitute foreign products Russian agricultural companies will need increased investment. "We will not manage to replace banned products soon, neither meat nor dairy. Moreover, the population of dairy cows is decreasing. However, if we substitute foreign beef it will mean that we have taken the vacant place of producers of high-quality meat," he said.
Denis Cherkesov is certain that, taking into consideration the modernization of equipment, in 3-4 years Russian producers will be able to replace 50 percent of banned beef imports. "Last year we imported 40 thousand tons of frozen beef. This year new plants in the Voronezh and Bryansk Regions will produce some 10 thousand tons. One plant was put into operation in May, another one will become operational at the end of the year. This means that next year this figure will be greater," the expert said.
Speaking about a possible increase in beef prices, Cherkesov noted that there are several factors affecting the issue. "First of all, some sellers may try to benefit from the situation. In addition to that there's the exchange rate between the US dollar and the euro, which affects the prices for imported beef as well as increasing prices for pork and poultry, which may also cause an increase in beef prices. However, the current situation shows that the prices for meat have not increased," Cherkesov said.
