Russia has already experienced a 20%-25% increase in the average price of meat products since the beginning of the year with a ban on meat imports from the EU. If the U.S. and EU impose further trade sanctions against the country in response to that country’s actions in Ukraine, the affects upon Russia’s meat industry could be significant as a large number of regions such as Moscow purchase 67% of their meat from overseas – 40% of which is from NATO countries. Currently 20% of Russian meat imports are from Brazil and according to Russia’s Trade & Services Department meat supplies from Brazil and other BRIC nations can be stepped up in response to any sanctions imposed by NATO countries. Even without the question of sanctions, Russia’s meat industry’s profits have been falling. In 2013 the country’s largest meat producer, Miratorg, saw a 13% decrease in net income, and the second largest producer, Cherkizovo, saw a 70% drop in profits.
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