January 13, 2010

Russia's US poultry ban may lead to higher meat prices

A recent ban on imports of chlorine-treated US poultry could lead to a sharp increase in meat prices in Russia due to the use of more expensive ingredients by local meat processors.

Until recently, US poultry has a huge presence on the shelves of Russian supermarkets, and was used as a relatively cheap ingredient in the production of sausages, frankfurters and other meat products.

The Russian ban will trigger meat price increase up to 15-20% by February, according to analysts' estimates.

A solution to this situation may be to resume the use of GM soy in the production of sausages. In Europe, GM products are currently used only in the production of cheap food, with mandatory label information, whereas Russia still has no such rule.