August 5, 2010

Russia raises new issues with US poultry deal

The US poultry sector said Tuesday (Aug 3) that Russia has raised "further issues" with a trade agreement that was supposed to have restarted US poultry exports to Russia after a six-month ban.

The issues raised were not specified. The matter has already reached Washington where US Agriculture Secretary Tom Vilsack is now monitoring the situation. An USDA spokesperson later said the department was working with the US Trade Representative "to ensure the terms of the agreement are fulfilled."

Russia had been the largest US export market for chicken until it banned the meat in January, claiming a chlorine disinfectant used on the meat violated its food safety policy. A deal to restart shipments was reached in June between US President Barack Obama and Russian President Dmitry Medvedev. As part of that deal, US chicken companies agreed to use non-chlorine treatments on chicken bound for Russia.

"The Russians are now raising further issues about the provisions of the agreement. We hope these matters can be resolved speedily and are awaiting further clarification from the US government," the National Chicken Council said.

"It is not going as smoothly as we would like. It is in both government's hands," said Toby Moore, spokesman for the USA Poultry and Egg Export Council.

The deal came after a series of talks between US technical officials and Rospotrebnadzor, Russia's consumer watchdog.

The USDA began posting plants approved to ship to Russia in late July, including plants owned by top producers Tyson Foods Inc (TSN.N), Pilgrim's Pride Corp (PPC.N), and Sanderson Farms Inc (SAFM.O). Pilgrim's Pride sold out its entire August volume from Russian-approved plants.