Russia-Beef market making a slow recovery.

RUSSIA-Market slowly recovering

There are early signs that beef buying from Russia is picking up. Imports increased last month, following low levels over the previous three months.

Brazilian exports to this market reached 25,179 tonnes swt in February, up 57% on January, with a 6% increase in average prices to US$2,317/tonne.

Uruguay has also seen an increase in demand from this market, with a total of 3,125 tonnes shipped in February, up 7% on January 2009 and 38% higher than October 2008 (when exports bottomed out).

In addition, Russia has restarted buying Paraguayan beef, after practically stopping imports from this country since last August as a result of the global financial crisis. During the first half of February, Russia imported 1,500 tonnes of fresh beef, after importing only 117 tonnes in January.

Australian beef exports to Russia totalled 681 tonnes in February, with chuck and blade accounting for 51%, silverside 23% and manufacturing product only 6%. If this slight resumption of trade to Russia develops into a modest trade, this may serve to re-ignite competition for Australian manufacturing grade product in world markets, allowing the lower A$ to be reflected in prices for trim and lower priced cuts and Australian cattle.