Beef and dairy cattle farmers are against of New Zealand cows
NMA asks to exclude beef from the CU-NZ FTA as preferential terms for New Zealand beef supplies to the CU market is sure to have negative effect on dairy farming sector. If the market is open, annual New Zealand beef supplies to Russia may increase from 1.5-3 thousand tons (600 thousand tons – total import) to 100 thousand tons, this will result in wholesale prices decrease. Dairy cattle price decrease by 1 ruble per kg leads to dairy sector profit decrease by 2.5 bln rubles due to beef, supplied to processors, price decrease. Concerned about competition beef producers have sent a letter to First Deputy Prime Minister of the Russian Federation Igor Shuvalov asking him to exclude meat from the intergovernmental agreement.
SOUZMOLOKO also opposed the Free Trade Agreement between CU countries and New Zealand. According to union’s estimates, in case the Free Trade Zone with New Zealand is established import of dairy products (milk powder, cheese, butter. etc.) from NZ to Russia may increase by 3 times by 2016 – to 600 mln dollars. Import growth may lead to Russian production decrease and small processors bankruptcy.
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