In the first half of 2024, Russia experienced a significant 40% decline in pet food imports compared to the previous year. This decrease is attributed to both logistical challenges related to payments with politically aligned countries and an increase in domestic production, according to Russian business sources.
Sergey Dankvert, head of Rosselhoznadzor, Russia’s veterinary regulatory authority, highlighted that the surge in local pet food manufacturing is a primary factor behind the drop in imports. Speaking to RBC, Dankvert asserted that numerous companies are authorized to supply pet food to Russia but raised concerns over discrepancies between pet food labels and their actual contents from Western suppliers.
“Whether it’s Monge or Hills, we have no objection as long as the contents match the label. If a package claims to contain ‘duck’ but lacks this ingredient, it affects our pets,” Dankvert remarked. Rosselhoznadzor suspended Hills pet food imports in February 2024 due to severe production violations and regulatory issues.
Current estimates suggest that imports now contribute to just 2% of the Russian pet food market. Kirill Dmitriev, president of the Russian National Association of Zoo Industry, believes this figure may be closer to 8% but acknowledges a notable decline in recent years. Despite this trend, Dmitriev indicates that new importers are exploring opportunities to fill the gaps, with Turkish and potentially Asian suppliers entering the market.
Payment challenges have compounded the issue. Russian businesses have reported increasing difficulties with transactions involving politically friendly countries like China, Türkiye, and the UAE. The scrutiny of payments has intensified since U.S. President Joe Biden’s December 2023 threat of secondary sanctions on financial institutions facilitating trade with Russia. This has led to a 20% drop in imports from China in early 2024.
Dmitriev attributes the import decline to a mix of factors including payment issues, veterinary restrictions, and enhanced domestic production. He believes innovative approaches are necessary for maintaining import flows.
Yulia Dolzhenkova, development director of Zooinform, a Moscow-based pet industry media company, noted that payment problems with Chinese suppliers are not the primary reason for the import drop, as Chinese firms represent a small portion of the trade. However, she highlighted that difficulties in payments impact Russian pet food companies reliant on Chinese equipment and parts, leading to increased costs and extended delivery times.
Dmitriev concurred that the complications with financial transactions contribute to higher costs for imported pet food, making it more expensive on the Russian market.
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