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.

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."

Non-chlorine poultry cleanser developed

Researchers at the U.S. Agricultural Research Service have developed a poultry cleanser using lauric acid and potassium hydroxide, FoodProductionDaily.com reports. Using this solution instead of chlorine-based sanitizer is effective in eliminating bacteria that cause food borne disease, according to a study in the International Journal of Poultry Science.
The U.S. Department of Agriculture unit has been working to find alternatives to poultry chlorine washes. Since 1997, the European Union has banned poultry treated with chlorine, causing a long-standing trade dispute.

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.

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.

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.

Russia resumes imports of Turkish chicken after four-year ban

Russia has ended a four-year ban on processed chicken imports from Turkey after concluding that avian influenza is no longer an overarching concern in the Mediterranean nation. Turkey can now send slaughtered chickens to Russia, but live chickens, eggs and chicken feed are still prohibited, according to Agence France-Presse.
The change comes one month after Russia closed its market to U.S. chicken because it is cleaned with chlorinated water, a violation of new Russian poultry processing rules.

US-Russia trade talks end in stalemate

Two days of trade negotiations between the United States and Russia have ended without a resolution to the dispute over the use of chlorinated water in poultry processing, according to Reuters news agency. The talks also failed to resolve a dispute over antibiotic residues that led Russia to block imports from nearly all U.S. pork processing plants.
Russia barred poultry imports from the United States because U.S. processers wash the meat with chlorinated water to remove pathogens. Russia says that the chlorine residues that remain on poultry after this process is too high to conform with its food standards. Before the ban, Russia had become the United States’ largest export market for poultry, with an annual value of approximately $800M.
Russia is also the fifth largest export market for U.S. pork, according to Reuters. Hog futures fell on January 21 as traders in Chicago responded to the news of stalled negotiations.
Russian importers are negotiating with other countries to replace its U.S. poultry imports. Thailand “said it was interested in starting large-scale supplies of poultry imports to Russia and guaranteed full observation of Russian veterinary and sanitary rules," the Russian health agency Rosselkhoznadzor said in a statement.
The U.S. and Russian governments said they will continue to discuss the import disputes, Reuters reported.

Poultry industry urges US to pursue action against European ban

The American poultry industry has urged U.S. Trade Representative Ron Kirk to “fully and resolutely pursue” a World Trade Organization action against European Union rules that effectively block American poultry from the European market.
“To date, the EU has conducted no risk assessment to justify the ban on U.S. poultry,” wrote George Watts, president of the National Chicken Council; Joel Brandenberger of the National Turkey Federation; and James H. Sumner of USA Poultry and Egg Export Council in a letter to Kirk’s agency.
Since 1997, the European Union has banned imports of poultry processed with chlorinated water, which helps control potentially pathogenic microorganisms and is considered safe by U.S. authorities. The industry representatives who signed the letter estimate that the policy prevents them from developing a market in Europe worth about $240 million for chicken and $60 million for turkey and duck.
The European Food Safety Agency, the EU Scientific Committee on Health and Environmental Risks, and the EU Scientific Committee on Emerging and Newly Identified Health Risks cleared the way in 2008 for approval of the use of four pathogen-reducing treatments—chlorine dioxide, acidified sodium chlorite, trisodium phosphate, and peroxyacids— finding them safe and effective. The European Commission tentatively approved their use, but was overruled by representatives of national governments.
“The EU has not been able to demonstrate nor justify why the use of [pathogen-reducing treatments] is not scientifically acceptable and why a politically expedient decision should be acceptable,” the industry representatives wrote. “Pursuing resolution of the issues through the WTO dispute settlement process may not only prove to restore U.S. poultry exports to the EU but, equally important, will … provide for a more predictable and fairer opportunity for agricultural exports to participate in the world market.”

Russia, US to solve dispute over poultry imports

Russia and the United States will hold talks on January 17 in Moscow to solve a dispute over U.S. poultry imports, a top Russian official said on Sunday, according to Reuters.
Russia blocked U.S. poultry imports beginning January 1 with a law prohibiting chlorine as an anti-microbial treatment in poultry production.
Russia's chief sanitary official Gennady Onishchenko reportedly said that he hoped a compromise would be found at talks in Moscow, which he agreed to hold after telephone talks with James Miller, the USDA's undersecretary for Farm and Foreign Agricultural Services.
The United States supplies more than one-sixth of Russian poultry consumption, or 600,000 metric tons, Onishchenko said, adding that Washington knew about Russian plans to proceed with new regulations since 1994.
The January 17 talks will involve shipments of U.S. poultry, which is already en route to Russian ports on the Baltic Sea. U.S. officials have said there might be some 30,000 metric tons of poultry already en route to Russia.

Russia to ban US imports of poultry meat treated with chlorine

A new technical regulation prohibiting imports of poultry meat treated with chlorine of a certain concentration could see an embargo being put on such imports from the U.S. to Russia, FoodBizDaily reported. Russia is the largest importer of poultry meat from the U.S.
The new rules, which may be implemented before year-end, are not expected to affect the Russian poultry market as its production is growing, Vladimir Fisinin, the president of Rosptitsesoyuz (Russian Poultry Union), was quoted as saying. U.S. companies that are not applying chlorine treatment for poultry can be added to the list of authorized suppliers, he added.
The move is being seen as a political step as there is no evidence that chlorine-treated meat is dangerous for Russian consumers, said Sergey Yushin, head of the executive committee of the Russian Meat Association.