Randers, July 22, 2010
Danish Crown Beef Division again benefits from having gained full access to the Russian market for exports of meat from animals over 48 months old. For 14 months, it was impossible to export meat from slightly older animals because of prolonged negotiations between Brussels and Moscow to obtain the necessary veterinary certificates even though the animals had been BSE-tested. Russia only accepted meat from BSE-tested animals aged 30 months or older. However, since 1 March the certificates have been in place, creating hectic activity in both the sales and the shipping departments.
- We have been able to increase our exports considerably. At the same time, it has relieved some of the pressure on our production because we do not have to separate the meat from animals under 30 months and over 48 months, says Jacob Rahbek Pedersen, Export Manager in Danish Crown’s Beef Division.
The cause of this somewhat difficult situation dates back to the beginning of 2009.On 1 January last year, the European Commission increased the BSE testing age from 30 to 48 months for normal animals to reduce the number of tests and cut costs. Unfortunately, new veterinary certificates to match the new requirements were not issued simultaneously, prompting the Russians to exclude meat from older animals.
In the meantime, the meat was sold on other European markets and looking back, this proved to be a fortunate move by the Beef Division.
- In autumn 2008, Russian prices of the traditionally cheap meat cuts were very high. But prices declined drastically during the financial crisis and bottomed out during 2009. We therefore decided to sell our volumes on other markets. In general, prices of traditionally expensive meats fell in the EU, but increased for the traditionally cheaper meat cuts. Today, the situation is different on the Russian market and the traditionally cheaper meat cuts are again in high demand, says Jacob Rahbek Pedersen.
He looks forward to an improvement of Danish Crown’s opportunities for exports to the attractive Russian market next month. This will happen when – following an almost ten-year ban due to the fear of BSE – it will again be possible to export meat with bones.
- This gives us new opportunities to offer our customers an even wider range of products and we generally have high expectations of the Russian market in the coming period, Jacob Rahbek Pedersen explains.