The volume of beef production during the first half of 2009 decreased by 12.9% compared with the same period of 2008. Last month the level of beef production amounted to 19,100 tonnes, which is 8,1%, lower than in September 2008, but 7,4% higher than in May 2009.
       
       The low level of the domestic beef production and persisting import dependency leads to a steady price increase in the beef market. The average beef price in Russia for the first half of the year has already exceeded the numbers of the same period of 2008 by 20%.
       
       The current beef production costs in Russia amounted to 131,4 rubles/ kg (EUR3) for premium beef and 109.8/ kg (EUR 2,4) for common varieties. Both prices, compared to January this year, rose by 60%.
       
       In addition, cattle numbers in the country are steadily declining. Livestock breeding in Russia is still less profitable than the production of pork or poultry due to large amounts of beef imports supplied to the country for the last several years. In 2008, the share of beef imports in the market amounted to 40%. More than half of all the shipments of frozen beef came from Brazil.
       
       Source: Meat International.com,October 9,2009.