Potential impact of a temporary ban imposed by Russia on Brazil meat exports on the Russian meat market

Abstract

On December 1, 2017, Russia imposed a temporary ban on Brazilian beef and pork exports due to traces of a banned feed additive ractopamine. This is the fourth Russian ban in a row in a five-year period. During that period Brazil became Russia’s chief meat supplier from non-CIS countries. Although Brazilian meat share in Russian consumption was not high, the lion’s share of Brazilian exports was consumed by Russian meat-processing plants. None among meat suppliers to Russia can replace Brazil in terms of quality. And this can induce price increase for finished beef products in the short run. Possible rise of pork prices is likely to stabilize the Russian market. Brazil is not going to lose the Russian meat market. Still despite the ban Brazil meat exports will increase thanks to Chinese high demand. Today becoming usual import bans in world meat trade undermine the foundations of competition and trade.