The Russian ban on U.S. beef was finally lifted in October 2007 and product began flowing into the market in early 2008. The first shipments of high quality U.S. beef – tenderloins, striploins and ribeyes – sold very well, and beef offal is showing very strong sales. Closed to U.S. beef from late 2003 through 2007, Russia has quickly reemerged as the sixth-largest market for overall U.S. beef exports and the third-largest for U.S. beef variety meats. Although full access has yet to be restored, exports to Russia through August 2008 were 28,956 mt valued at $67 million.  Exports to Russia are expected to drop off considerably for the remainder of the year while the market absorbs existing stocks and adjusts to changes in exchange rates.

U.S. pork exports to Russia doubled during 2006, and set another record in 2007, posting an impressive growth rate of 21% to reach 99,876 mt valued at $206,885 million. In 2007, U.S. pork/pvm exports to Russia represented 7% of the total U.S. pork/pvm exports. High Brazilian pork prices and the weak U.S. dollar gave the U.S. a competitive edge. However, exports to Russia are expected to slow down for the remainder of the year as inventories are well stocked and the U.S. dollar is strengthening against a depreciating Brazilian Real and Russian ruble. Russia is the second largest pork importer in the world and the U.S. is gaining market share, with exports doubling the 49,000 mt U.S. quota. Retail sales in Russia increased by 15% in the first half of 2008 year-on-year to 6.2 trillion rubles. Sales in June rose almost 14% more than a year earlier. Consumer prices have grown since the start of 2008 compared to the same period of last year, although U.S. pork sales also continue to increase.