While grain producers see the duties as a loss, livestock breeders argue that the introduction of duties will keep the price of meat affordable.
It was the livestock breeders (as well as millers) who were the force that initially began to lobby for the idea of limiting grain exports. The reason is simple: many animals (pigs, chickens) eat grain and products based on it. Therefore, a rise in the price of wheat will obviously lead to a rise in prices for chicken legs and pork sausage.
At present, the wheat tax is almost in effect. From 15 February it will be 25 euros per ton, and from 1 March — 50 euros per ton.
Livestock breeders are happy: according to the head of the National Meat Association of Russia, Sergei Yushin, this will keep the prices for the final animal products acceptable for buyers. And the most important thing is not to cut production.
After all, if the price of meat products in stores rose significantly, many people would decide to simply abandon them. This means that livestock farms would receive less money. The consequence is either the closure or the reduction of production. As a result, plans for full import substitution for meat would have to be postponed again indefinitely.
Thanks to duties, today all this is not threatened by livestock breeders. Director General of the National Union of Pig Breeders Yuri Kovalev noted that the consumption of meat by Russians is growing from year to year, and expressed the hope that this will continue. But the main factor here is just the comfortable prices.
«Floating» grain duty is introduced indefinitely
On February 8, Russian Prime Minister Mikhail Mishustin signed a decree on the introduction of an unlimited «floating» duty on wheat exports from June 2, 2021. It will be 70% of the difference between the customs sale price and $ 200 (for barley and corn — $ 185).
It is planned that the Ministry of Agriculture will, starting from April, weekly monitor the market in order to correct this formula if necessary.
And despite the fact that wheat producers are extremely unhappy with this situation, they are likely to eventually have to sell their products on the domestic market. After all, waiting for the duty to be canceled is unlikely to work in the near future.
So, one can hope that meat and sausage in stores will not rise in price.
