Thursday, February 27, 1997

Beef checkoff takes aim at developing Russian market

By J.T. SMITH / Farm Editor

Citing the significant long-term potential for U.S. beef in Russia, the U.S. beef industry has reaffirmed its commitment to the Russian market.

At the heart of this project is the hiring of Alla Dubrovina as a full-time representative in Moscow.

Dubrovina will work closely with U.S. suppliers and the Russian trade to help steer the industry's market development program in this emerging market.

"While the industry's course in Russia will be influenced by economic and political events beyond our control, we intend to have a positive effect on those factors that we can control," says Philip Seng, president of the U.S Meat Export Federation.

Seng says the USMEF will aim to increase meat trade with Russia and make sure the U.S. industry is in position to take full advantage of opportunities as they unfold.

The USMEF chief executive officer says the work of the beef checkoff program in Russia will be highly trade oriented, with some funding set aside for menu promotions in high-end restaurants.

"Alla has many contacts in the Russian trade and government," Seng notes. "She will work very closely with them and will help us qualify new importers and distributors in the market. She also will be responsible for assisting U.S. suppliers, making introductions and gathering the type of market intelligence that is so critical to the industry's performance."

A marketing specialist in Moscow

A graduate of Moscow University, Dubrovina worked most recently as a marketing specialist in the agricultural section of the U.S. Embassy in Moscow.

Her work at the embassy brought her in direct contact with many of the issues confronting the U.S. red meat sector - which include testing and labeling of imported foods, customs requirements, and import certifications.

Dubrovina also served as an embassy liaison for veterinary issues and has experience with foreign trade exhibitions, advertising and in-store promotions.

Russia's 150 million people have a strong tradition of eating beef, but their own beef production has plummeted in recent years as a result of the troubled economy.

Beef import restrictions for the United Kingdom and Ireland because of the bovine spongiform encephalapathy or "BSE" issue also contributed to short beef supplies in Russia.

While much of the Russian population today cannot afford high-quality U.S. beef, USMEF expects this situation will improve with a better Russian economy.

Three-year stablization program

USMEF notes that the Russian government and the Central Bank of Russia initiated a three-year stabilization program in 1996.

The new program expands upon Russian's tight fiscal and monetary policies and continues the trade and energy liberalization initiatives that began in 1995.

Russia's Gross Domestic Product is expected to grow by 6 percent over the next three years, compared with a 5 percent contraction in 1995.

Sales of U.S. beef and beef variety meat items to Russia in 1996 were estimated at 50,000 metric tons, 72 percent of which are beef variety meat items.

For 1997, USMEF has a goal of 67,000 metric tons for U.S. beef and beef variety meat sales to Russia.

Behind Japan, Russia is the second largest buyer of U.S. beef variety meats.

Beef livers account for 80 percent of U.S. beef variety meat sales to Russia - most of which are sold in retail establishments.