Russia extends ban on meat, poultry from Western nations

Russian President Vladimir Putin has signed an order to extend the country’s ban on imports of meat, poultry and other agricultural products from the United States, Canada, European Union, Australia and Norway.
Under the order, the ban, which would have expired on August 8, will be continued for another six months, according to a report from Reuters. The list of the type of goods banned from import into Russia is not expected to change under the extension.
The Russian trade ban was initially put into place on August 6, 2014, in response to sanctions imposed by these countries stemming from events in the Ukraine and the Crimean Peninsula.
North American Meat Institute President and CEO Barry Carpenter expressed concern with Russia’s decision to extend the ban, calling the move 'unjustified' in a statement.
"Continuing this ban ignores the free trade obligations that came with Russia's 2012 decision to join the World Trade Organization," said Carpenter. "The U.S. meat and poultry industry supports free trade and strives to reduce tariff and non-tariff barriers to ensure the safe trade of these products."
Prior to the ban, Russia was the second-leading market for U.S. chicken, according to the USA Poultry & Egg Export Council. In 2013, the U.S. exported about 267,000 metric tons of chicken to Russia, valued at $303 million.

Irish ag minister orders hotline to inform about Russian bans

The Irish government is setting up an advice line to provide the most updated information available concerning Russia’s ban on agricultural products from countries that had imposed economic sanctions on Russia as a result of the ongoing situation in Ukraine. The trade restrictions came as a result of a decree signed August 6 by Russian President Vladimir Putin.
“My department [is] currently working to clarify the specific details of the ban. The impact on Ireland will depend both on the products covered by the ban and any knock-on effects on international market prices as banned products seek replacement markets,” stated Ireland Minister for Agriculture, Food and the Marine Simon Coveney.
“To assist companies exporting to Russia, I have asked Bord Bia to establish an advice line, which will make the most up-to-date information available to these companies.”
Bord Bia, the Irish Food Board, will assist companies with regard to the trading situation with Russia and help in progressing such opportunities. The dedicated unit may be contacted by calling +01.6142.292.
While work is continuing to determine exactly what products are covered by the ban, Coveney noted that initial indications were that casein, infant formula and tea extract are not being banned. Russia's ban, as announced, will last one year and will cover imports into Russia of meat, fish, milk and milk products, fruit and vegetables from the European Union. Other countries affected include the United States, Australia, Canada and Norway.
“My department will maintain an ongoing assessment of the situation, where intensive engagement is already ongoing with Russian authorities regarding agri-trade issues including temporary restrictions already in place on certain exports in specific sectors,” the minister concluded.

Brazil’s poultry, pig producers concerned over Russian import ban

The presidents of Brazil’s poultry union, UBABEF, and pork producers’ and exporters’ union, are calling for urgent measures in response to Russia’s decision to revoke recognition of slaughterhouses in three of the country’s states.
The Russian ban extends to some 80 slaughterhouses and was imposed following inspections that resulted in concerns over monitoring contaminants. Brazil’s Ministry of Agriculture has said that its staff will be fully mobilized to overturn the decision.
Russia is an important market for Brazilian poultry exports. Last year, Brazil exported 144,300 tons of poultry meat to Russia, with a value of US$249.5 million. Between January and April 2011, Russia imported 29,700 tons of Brazilian poultry meat, worth US$53 million. 

Russia clears more US poultry plants for exports

Russia has now cleared 25 of the 26 plants previously deemed eligible for poultry exports, said the U.S. Department of Agriculture (USDA).
About half of the poultry plants had been given the go-ahead as of last week. "We continue to work with the Russians, continue to negotiate and discuss with them the next steps," said Agriculture Secretary Tom Vilsack. In 2009, the United States shipped a total of 733,000 tons of poultry meat to Russia. This year's quota was at 600,000 tons, but Russia has given a quarter of that to other suppliers.

Russia beginning approval process of US poultry exporters

A months-long trade dispute is slowly being worked out as Russia has approved 11 U.S. poultry exporters for trade.
In June, U.S. President Barack Obama and Russian President Dmitry Medvedev solidified an agreement that would resume trade between the two countries after Russia refused to accept imported poultry processed with chlorine. Actual implementation of the agreement, however, has been a slow process, with the Russian government demanding re-inspection of each U.S. facility on the list for approved exports—a move that was not addressed in the June agreement. "Russia's refusal to resume poultry trade with the U.S. demonstrates a serious lack of commitment to the agreement reached by the two countries in June," said Senator Blanche Lincoln, chairwoman of the Senate Agriculture Committee.
So far, only 11 plants have been approved, in spite of the fact that a Russian official said Russia would start accepting poultry from 68 facilities this week.

Russia rasies more issues with US trade agreement

Russia has raised "further issues" with the trade agreement that was supposed to have ended a six-month ban on U.S. poultry exports to that country, according to Reuters.
While specifics haven't been provided, a United States Department of Agriculture (USDA) spokesperson said the department is working "to ensure the terms of the agreement are fulfilled." The USDA began posting a list of plants approved for exports to Russia in late July, but Russian news agency Interfax has warned Russian importers to hold off on doing business until the agency posts a list of its own.
"Resolving the problems has been complicated by a number of technical issues, and they've proven not so simple," said Nikolai Vlasov, deputy chief of Russia's veterinary inspection agency Rosselkhoznadzor. U.S. Secretary of Agriculture Tom Vilsack said he is monitoring the situation.

Pilgrim's Pride to resume exports to Russia

Pilgrim's Pride Corporation has received formal approval from the U.S. Department of Agriculture (USDA) to resume exporting chicken products to Russia, according to a company press release. The company said the USDA has approved exports to Russia from Pilgrim's processing facilities in Boaz, Ala., Russellville, Ala., and Dallas, Texas.
Russian officials signed a formal poultry agreement with the United States earlier this month outlining new processing requirements for domestic chicken that is to be exported to Russia. Earlier this year, Russia had banned all U.S. chicken that had been processed with chlorinated water. Under the new requirements approved last week, U.S. chicken companies can replace the chlorinated rinse with cetylpyridinium chloride, peroxyacetic acid or hydrogen peroxide. Pilgrim's plants in Boaz and Russellville were converted to peroxyacetic acid earlier this year.
The USDA Food Safety and Inspection Service (FSIS) has compiled a new approved list for Russia that was sent to the Russian government last Friday that is based on the Russian-approved list that was in effect December 31, 2009. As soon as companies appear on the new FSIS list, they are eligible to begin shipping to Russia immediately.
"We are pleased that the new agreement is in place and we look forward to resuming export shipments to Russia as soon as possible," said Don Jackson, Pilgrim's Pride president and chief executive. "Russia is an important export market for U.S. chicken and the re-opening of the borders will be a significant benefit to our company and industry."

Senators urge action on Russian chicken ban

A group of 25 U.S. Senators wants President Barack Obama to urge an end to a Russian chicken ban when he meets this week with Russian President Dmitry Medvedev. Reports in the Atlanta Journal-Constitution and Farm Futures predicts lower U.S. chicken prices if the ban continues, but said the industry would be harmed.
Since January, Russia has banned the imports because of safety concerns over how U.S. chicken is cleaned with chlorine wash. Russia was the largest importer of U.S. poultry, spending $800 million a year and representing more than 500,000 jobs.

Russia may resume US poultry imports with 25 percent cut

The U.S. and Russia may have reached an agreement on reinstating some U.S. poultry imports to Russia, with a 25% reduction, according to the Associated Press.
Russia banned all U.S. poultry imports Jan. 1, due to a common chlorine treatment U.S. poultry companies use.

US, Russia may be close to deal on poultry trade

Russia may be close to having a plan in place to resume U.S. poultry trade, which has been suspended since January, said The Wall Street Journal.
According to Russian newswires, Rospotrebnadzor Chief Gennady Onishchenko said his agency has come to an agreement on various rules for trading poultry between Russia and the U.S. Rospotrebnadzor is Russia's consumer protection agency.
The ban on Russian imports of U.S. poultry took effect January 19, which Russia attributed to a common chlorine wash used in the U.S.

U.S., Russia poultry trade solution may be close

James Sumner, president of the USA Poultry & Egg Export Council, said the U.S. and Russia may find resolution for Russia's ban on U.S. poultry soon, according to a Business Week report.
A memo to export council members said there is a “new approach” in the negotiations since “bilateral talks were not making progress,” the article stated.
U.S. chicken exports to Russia have been effectively banned since January 1.

Onishchenko: US-Russian poultry agreement close at hand

Russia’s consumer protection head Gennady Onishchenko told the press that negotiations over U.S. poultry imports to his country could produce an agreement within days, according to Reuters.
He said that the two countries are working together long-distance on the final details of ending Russia’s import ban on U.S. poultry, which went into effect in January as the result of a dispute over the use of chlorine in poultry processing.

Russia seeks Turkish poultry to make up for loss of US supply

Russia’s increasing demands for Turkish poultry have led to a rift between the Turkish government and some of the country’s poultry producers, who are concerned that an export increase could reduce the domestic poultry supply and hike up prices, according to Hürriyet Daily News.
Russia has requested 500,000 tons of white meat to make up for its loss of U.S. and Brazilian poultry since Moscow enacted an import ban earlier this year, claiming that the two countries employed “excessive chlorine usage” in their processing plants. The Russian government lifted a ban on Turkish poultry February 1, soon after enacting its chlorine wash ban.
Six Turkish poultry producers have signed agreement to export meat to Russia, and 11 more deals are in the works, according to the newspaper. But others are hesitant about entering into agreements. Ramazan Altintaş, who oversees exports at poultry producer Şeker Piliç, said that Turkey is not equipped to meet Russia’s export demands.

Sanderson CEO unsure of progress with Moscow

In light of recent comments by Russian officials that progress has been made in U.S. poultry import talks, Joe Sanderson of integrated chicken company Sanderson Farms says he is “neutral” about whether Russian policy will change, according to Reuters news service.
Russia was the number-one export market for U.S. poultry until this year, when Moscow restricted the use of chlorine washes in poultry processing. Chlorine rinses are used throughout the U.S. poultry industry to remove pathogens from poultry carcasses.
Chief Executive Officer Sanderson said his company is testing a chlorine-free rinse, but it is unclear whether Russia will approve the agent. He added that exports to Russia made up only 2% of his company’s sales in 2009, but Sanderson Farms would be seriously affected if Russian restrictions lead to too much dark chicken meat on the American market and a corresponding fall in price.

Russia may resume US poultry imports

Gennady Onishchenko, Russia’s chief sanitary inspector, told a press conference that “American chicken has a chance of returning to the Russian market” after “stunning” progress in recent trade talks between the two countries, Reuters reported.
The U.S. Department of Agriculture has called the talks constructive. There is no word on whether U.S. producers have agreed to stop using chlorine washes to clean poultry carcasses, a practice that Russia restricted earlier this year, resulting in a stoppage of U.S. poultry imports.
In related trade news, Russia will resume U.S. pork imports after producers agreed to meet certain Russian regulations related to food safety, according to Reuters.

Russia: Progress made in US poultry talks

Russia’s chief sanitary inspector, Gennady Onishchenko, told Russian media that recent meetings between his country and the United States have led to some agreement regarding poultry imports, according to Business Week. He did not offer more specific information.
Russia halted U.S. poultry imports earlier this year after it restricted the use of chlorinated water washes on poultry carcasses, a tool widely used in the United States to kill pathogenic bacteria.

Tyson seeks to reopen Russian market

Addressing the J.P.Morgan Global High Yield & Leveraged Finance Conference in Miami, Fla., Tyson Foods Inc. Chief Financial Officer Dennis Leatherby said Tyson has made significant progress in its day-to-day operations and is committed to improving its competitive position.
He cited the company’s recent first-quarter record of $0.42 earnings per share and return on sales above the normalized ranges for its beef, pork and prepared foods segments. Chicken operations have continued to bounce back, he said, although exports to Russia have fallen.
Russia used to make up half of Tyson's export market, but now accounts for only 10%, Reuters news service reported. Russia stopped importing poultry from the United States earlier this year after it restricting the use of chlorinated water for cleaning poultry carcasses. Use of a chlorine wash is standard in the United States.
Leatherby said that Tyson Foods is interested in discussing alternative cleaning methods with Russian authorities.
In its overall business, Leatherby said that Tyson expects to benefit from market fundamentals. With lower overall industry production levels, decreased imports, increased exports and lower cold storage inventories, according to USDA data, the availability of chicken, beef, pork and turkey in the United States appears to be declining for the second year in a row.
"This is the first time that has happened in 40 years," Leatherby said. "Although demand is down, supplies are down more, making for what should be a favorable pricing environment. Prices for corn and soybean meal—key inputs in chicken production—are expected to be favorable as well."
Leatherby said Tyson is focusing on integrating recent acquisitions in China and Brazil, further reducing its $1.9B debt after cutting it by $400M last quarter, reinvesting in its business and exploring opportunities for its renewable products group, which includes pet products, renewable fuels, biotech and nutraceuticals. The company recently reopened an idle plant and reconfigured it to produce high-end pet treats. Dynamic Fuels, Tyson's joint venture with Syntroleum Corp., is expected to bring its renewable diesel plant online this summer.

US, Russia meet to discuss poultry regulations

The U.S. and Russia are set to meet March 1 in Moscow about poultry imports, Russia’s chief sanitary inspector told the news agency RIA Novosti.
Russia imposed new restrictions on using chlorinated water to clean poultry at the beginning of 2010, effectively barring poultry from the U.S., where chlorine is routinely used to reduce pathogens on poultry carcasses. Last year, U.S. poultry accounted for more than a fifth of Russian consumption.

Russia’s Cherkizovo set to increase poultry production 40% in 2012

Vertically integrated Russian meat producer Cherkizovo said it will be increasing production at its facilities in Penza in response to recent market developments, including a ban on U.S. poultry imports,The Moscow Times reported. "Cherkizovo welcomes the government of Russia's recent provisions aimed at stimulating demand for national poultry producers by reducing poultry import quotas and restricting the use of chlorine … in poultry processing," said Sergei Mikhailov, chief executive of Cherkizovo Group.
The Penza project would increase live-weight production from 60,000 metric tons to 120,000 metric tons annually and involve a new incubation facility and slaughterhouse. The expansion is expected to cost about $120M.
Cherkizovo could step up its poultry production 40% in 2012 thanks to the Penza expansion and another expansion in Bryansk, The Moscow Times said.

Moscow may ease poultry import restrictions

Russia may temporarily ease import restrictions on U.S. poultry, provided that U.S. producers move toward meeting Russia’s new standards, according to First Deputy Prime Minister Viktor Zubkov.
Earlier this year, Moscow implemented restrictions on the use of chlorine in poultry processing, effectively banning imports from the United States, where poultry is routinely cleaned with chlorinated water to reduce pathogenic bacteria.
Talks last month on resuming U.S. imports stalled, but Russia has invited the United States back for a second round of talks about poultry imports, Gennady Onishchenko, head of Russia’s Federal Consumer Protection Service, told Reuters. “Now the ball is in the court of American partners,” he said.