January 4, 2006

USDA: Russia extends Brazilian beef, pork ban

The official press service of the Ministry of Agriculture reported that Russian and Brazilian veterinary officials held a high-level meeting to discuss the epizootic situation in Brazil after several foot and mouth (FMD) disease outbreaks were confirmed in southern Brazil. 

At the meeting, the Brazilians failed to convince their Russian colleagues that they could eradicate FMD from their territory and guarantee the well-being of their animals. 

According to Russian media reports, after the meeting Russian officials announced an extension to the ban on all beef and pork products from Mato Grosso do Sul and Parana and a six-month ban on six nearby states.

Experts believe that an expanded import ban would wipe out Brazilian beef and pork exports to Russia in 2006 if it lasts beyond March, which would have a significant impact on meat prices in Russia. 

Analysts expect pork and beef prices in Russia to increase by more than 10 percent in the near-term and up to 15-20 percent in the long-term. Brazil is the leading exporter of beef and pork to Russia. 

For the full USDA report, click here.