Why
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Our Business Development team are currently working on an exciting opportunity to export our organic beef product to the market in Russia.
Why Russia?
Russia is the largest beef importer in the world and has experienced strong economic growth during the last few years making it an ideal export market for organic Australian beef. This growth is underpinned by Russia's oil industry and a global increase in oil prices. Unemployment, inflation and public debt are low whilst poverty levels have reduced significantly. This economic growth has seen a rise in disposable income and has resulted in greater consumer purchasing power. In 2012, Russia joined the World Trade Organisation which resulted in an overall increase in the import quotas for beef.
Do they like Red Meat?
Consumption of Red Meat in Russia has remained strong due to the higher standard of living and over 50% of the population consume meat on a daily basis. Russians have prefered processed meats, specifically in sausages. However, there is a growing trend for fresh meats and a demand in the high quality meats served at high end restaurants throughout Russia. A significant portion of Australian beef exported to Russia is grass fed and the majority of Australian beef is already consumed by the high end steakhouses.
Don't they have cattle?
The predominate use of Russia's cattle herd is for the production of milk creating a shortage of beef production. This reduction in supply of fresh beef and a growing demand for red meat will see a continued growth in beef imports to Russia.
Export Market
Hong Kong
Japan
Lebanon
Malaysia
Singapore
United States of America
United Arab Emirates
Taiwan
Current Export Markets
New Market Opportunity
Do you have the support network?
Through partnership with Meat and Livestock Australia (MLA), our quality organic beef is able to be marketed through a variety of established promotional activities in Russia, including trade shows and industry magazines. Within Russia, Australian beef is seen to be the 'Clean and Green' product offering superior quality over competitors. By using a reputable Australian exporter in conjuction with the MLA, specialists in exports to Russia, our organic beef product can be processed, packaged and shipped overseas.
Who else exports beef to Russia?
97% of Australia's beef exports to Russia are frozen. This places Australia in direct competition with South American beef, who currently dominate beef imports in Russia. This is a result of depreciating South American currencies creating cheap access to imported beef. While this has impacted on Australia's exports to Russia, 2013 received a boost when Russia banned US beef imports due to concerns over the use of growth hormones.
Is the timing right?
Australian beef is set to capitalise on Russia's accession to the WTO with the introduction of a High Quality Beef category. This allows for importing of high quality beef with reduced tariffs, giving organic beef an upper hand on the competition from South America. The downside is that the criteria to define High Quality Beef in Russia has not yet been determined and may be set to protect its own beef production industry. However, our confidence in the quality of the Autumn Valley Meat Co beef is reenforced by our alignment with a number of industry regulatory bodies. The standards set by this industry regulatory bodies can give consumers condience that our 'Clean and Green' product is of the highest levels of certification: for more details on certifications see
Russia
