Economy, Business And Markets

Russia Set to Start Beef Exports to Iran

Iran’s total annual red meat production is above 820,000 tons while consumption is about 880,000 tons.Iran’s total annual red meat production is above 820,000 tons while consumption is about 880,000 tons.

Russia’s Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor) and Iran Veterinary Organization have agreed on requirements that need to be met before Russia exports frozen boneless beef to Iran.

Iran allowed Russia to supply beef to the country in January 2016, however, since then the two sides have been in talks on delivery conditions. Now accredited companies can start supplies to Iran, Tass news agency reported citing Rosselkhoznadzor.

Also, Russia’s veterinary regulator notified its sanitary requirements to IVO on beef imports.

In December 2015, it was reported that the two subsidiaries of Miratorg-Bryansk Broiler and Bryansk Meat Company-would be allowed to supply meat products to Iran in the near future. In January 2016, Russia’s Deputy Agriculture Ministry Sergey Levin said Miratorg had received permission from Iran to supply beef, adding that Iran was interested in supplies of Russian oil, sugar and other commodities.

Russia’s Ministry of Agriculture and Rosselkhoznadzor have reiterated that Russia intends to actively promote bilateral trade cooperation with Iran.

According to the Islamic Republic of Iran Customs Administration, Iran exported 173.5 million worth of non-crude oil goods to Russia in the last Iranian year (March 2015-16), registering a 39% decline compared to the previous year. Imports stood at $529.8 million, indicating a 23% decline.

Latest IRICA statistics on bilateral non-oil trade pertain to the first four months of the current Iranian year (March 20-July 21) when Iran exported 89,800 tons of commodities worth $59 million to register a 2% decline in value compared with last year’s corresponding period and imported 403,000 tons worth $585.3 million, indicating a twofold increase year-on-year.

Food supplements, fruit and vegetable, raisins, dates, tomato paste, pistachios, carpet, petrochemicals and cement were among the main exports. Imports chiefly included electronics, grain, corn fodder, wood, paper and vehicles.

Iran has also started importing red meat from Kyrgyzstan with the first shipment of 32 tons having arrived in Alborz Province, IRNA reported late last month.

According to IVO, the shipment is the first batch of a total of 500 tons of red meat Iran has agreed to import from the landlocked Central Asian country.

According to the Association of Cattle Breeders, Iran’s total annual red meat production is above 820,000 tons while consumption is about 880,000 tons. Yet some 100,000 tons of frozen red meat are imported, which is 40,000 tons in excess of domestic demand.

“Excessive imports are causing problems for livestock breeders. Currently, we have surplus production, which is exported. Rumors of shortage in the market are spread by middlemen trying to increase prices,” Ahmad Moqaddasi, the head of the association, was quoted as saying by Mehr News Agency.

Some 100,000 tons of red meat worth $425.9 million were imported from China, Germany, Australia, the UAE, Brazil, Turkey, Oman and the Netherlands in the last Iranian year, indicating a 44.8% and 20.3% growth in volume and value compared to the previous year.

Iran’s Agricultural Ministry says it plans to limit annual meat imports to 60,000 tons.