Brazil is the biggest exporter of meat in the world. The Ministry of Agriculture, Livestock and Supply, known as MAPA or Ministério da Agricultura, Pecuária e Abastecimento expects that exports of bovine meat will grow consistently at about 2.15% per year. However, from August 2014, these numbers are expected to increase as Russia will start prioritizing the import of Brazilian meat. In this article, we will explain how to export meat from Brazil to Russia.
Russia's ban on some western countries’ food imports is having a large impact throughout the whole world. On 7 August 2014, Russian Prime Minister Dmitry Medvedev announced that for a full year all imports of meat, fruit, vegetables, milk and milk products from the United States, European Union, Canada, Norway, and Australia into Russia would no longer be allowed. This move is in retaliation to sanctions administered by these countries over Russian participation in the Ukrainian conflicts.
Bovine meat exports from Brazil grew by 8.6% in July 2014, when compared to the same period in 2013. 144,7 thousand tons of bovine meat with a combined value of USD 691,9 million were exported from Brazil in July 2014.
In July 2014, Russia was the main destination according to ABIEC, the Brazilian Association of Meat Exporting Industries. In comparison to July 2013 there was a growth of 79% in bovine meat exports to Russia reaching 41 thousand tons. The revenue also grew at an impressive rate: 113% of growth from 2013 to 2014, a total of USD 181 million. Agricultural products exported from Brazil to Russia in 2013 reached USD 2.72 billion.
The Russian ban on Northern American and European food products could cause a problem in Russia, since more than 50% of the food products consumed in Russia are imported. Due to the ban, the Russian Ministry of Agriculture reported that it would consult Latin American governments to supply food products to Russia. The Russian government has stated that sanitary requirements imposed on Brazilian producers interested in exporting food products, especially meat, to Russia were to be lightened.
With the sanitary requirements being lightened by the government, the number of Brazilian companies qualified to sell meat to Russia almost tripled. The new qualifications given by the Russian Federal Service for Veterinary and Phytosanitary Control, the Rosselkhoznadzor, for Brazilian industrial meat plants, as well as the authorization to export casings and offals are expected to result in larger numbers of Brazilian meat exports to Russia.
On 6 August 2014, the Russian sanitary service authorized the liberation of 87 slaughterhouses for the export of meat, offal, poultry, giblets, pigs and pig offals. There was also an inclusion of two dairy establishments. In the end, 89 establishments were authorized to export to Russia.
How to export from Brazil
Habilitating the facility to export
All export of live animals or animal products must be compliant with the requirements specified by MAPA. Thus, a company interested in exporting products must first obtain a registration from the Federal Inspection Service (SIF) of MAPA. Registration with SIF is only completed after the facilities and the production processes are in compliance with the sanitary, technical and legal requirements. After the registration is granted, the company must be inspected by the Department of Inspection of Animal Products (DIPOA) which is managed by the Secretariat of Agricultural Protection in MAPA. Only after completing a successful inspection will the company be added onto the list of companies authorized to export.
An International Animal Health Certificate, the CSI, is also required as an international document attesting to the health and proper vaccination of the animals, as well as:
- Conditions of the facilities where the animals are handled
- Appropriate use of supplies, such as food free from products of animal origin, hormones or prohibited anabolic steroids
- Application for Inspection of Agricultural Products (Form V)
- International Health Certificate, issued by the SIF
- Export Registration
- Pro-Forma Invoice
- Bill of Lading
- Products that come in containers sealed by the SIF must be accompanied by a CSI, without the need of re-inspection in Brazil
- Re-inspection is made by a Russian Veterinary upon arriving in a Russian port
- Inspection of the container, mainly verifying the integrity of the seals and container identification, according to the documentation
- In case of a discrepancy in the documentation analysis or in the inspection procedure, a re-inspection will take place. In cases that require the seals to be broken, the presence of a legal representative for the exporter and the depositary, as well as compliance to the requirements made by the Department of Inspection of Animal Products are required
How to export to Russia
Brazil exports boneless beef, pork and poultry produced by companies accredited to the Russian Federal Service for Veterinary and Phytosanitary Control, known in Russian as the Rosselkhoznadzor. As of August 2014, 89 Brazilian bovine, pork and poultry slaughterhouses were certified to export meat and raw meat products to Russia.
In order to export food to Russia, several sanitary prerequisites have to be met.
The exporting company has to attest that the animals were inspected before slaughter and the respective carcasses and offals were re-inspected by a veterinarian accredited to the SIF after slaughter. All the cuts of meat are required to have a SIF seal - which is glued in such a way that when the package is opened it is impossible to do without breaking the seal - attesting to their provenance.
The meat was obtained from the slaughter of animals that were not fed on:
- Animal ration made with animal-products, composed of offals and tissues of ruminant animals
- Rations made with the use of genetic engineering
- Other genetically modified sources
Also, the chemical-toxicological indicators, as well as the microbiological, radiological, veterinary and sanitary requirements of the meat are to be compliant with those in force in the Russian Federation.
The meat must not:
- Present blood clots
- Present abscesses
- Present fly larvae
- Present mechanical impurities
- Have been defrosted during storage, maintaining the temperature of muscle mass not less than 8°C for frozen meat, and not over 4°C for chilled beef
- Contain any preservatives
- Be contaminated by Salmonella spp. agents or other bacterial infections
- Have been treated with colorants, ultraviolet light or ionizers
Value-Added Tax (VAT)
Value Added Tax (VAT) is applied to any product that is imported to Russia, varying from 5% to 20% depending on the products customs classification. For example:
- VAT is fully collected on goods imported for free circulation
- VAT is fully collected on goods imported for processing, if the final product is consumed domestically
- Exemption of VAT on items brought to the Russian customs territory for further processing, if the final product is re-exported within a specific deadline
Russia currently has 16 federal economic zones, and import of products into these zones is exempt of VAT.