November 23, 2006

  

Russia presents opportunities for US red meat industry

 

 

A trade agreement signed last week between the US and Russia presents "tremendous opportunities for the US livestock and meat industry," said Philip Seng, president of the US Meat Export Federation (USMEF), provided that US producers and meat exporters recognise them.

 

In a news release issued late Tuesday, Seng said due to distrust among US suppliers over past difficulties such as "regular disruptions in trade by the Russians," convincing industry members to participate in the market won't be easy.

 

However, there is tremendous potential, Seng said, especially now that Russia has oil wealth in its favour.

 

"Because of the delays and difficulties seen with opening and dealing with the Russian market, a lot of people in this (US meat) industry have become discouraged," Seng said in the release. However, with its contacts in both eastern and western Russia, the USMEF can introduce US suppliers to buyers in that country, he said.

 

"Russia is changing, and presenting some great opportunities," Seng said. Now that Russia is expected to be part to the World Trade Organization, there "will be more disciplines in the trade relationship," he said, with Russia expected to abide by more global, internationally-accepted trading practices.

 

USMEF has offices in Moscow and St Petersburg and has maintained its operations there through difficult times. This will help assure continuous connection with potential buyers in the retail and food-service markets, Seng said. In addition, the organisation has established relationships with US meat exporters, who have products ideally suited to the Russia market.

 

There are still some steps that need to be taken before the agreement can be ratified, Seng said. Russian officials still must visit and audit US meat plants. The USDA Food Safety and Inspection Service also must change its library to acknowledge the new agreement. And an Export Verification programme from USDA Agricultural Marketing Service must be published.

 

USMEF said when the Russian market opens to US beef, "boneless and bone-in beef from animals 30 months of age or less will be allowed into the country. Pork producers also will benefit, as freezing pork alone will allow the product to be sold in both the retail and processing markets. Previously Russians had raised questions about trichinae in pork, even though trichinosis has not been an issue in the US for many years," the release said.

 

Also, the USMEF said "new protocols for US red meat plant approvals will be adopted. Previously, only individual plant approvals were granted.

 

"This was onerous and also called into question the US Department of Agriculture sovereignty over the US inspection service, as well as the plants themselves," Seng said.

 

When all the details are ironed out, Seng said US export possibilities will be greatly expanded. He said "the USMEF has always identified Russia as a major growth market. Prior to 2003 it was the sixth-largest US export market for beef and through September of this year was the seventh largest market for pork, by value. We see this as very positive going forward."