Russia cuts US poultry and pork import quotas

 

 

Fewer US pork and poultry imports will be allowed in at low duty rates compared to 2009, as Russia cuts its 2010 import quotas.

 

The news comes as US livestock farmers and meat exporters try to recover from the blow caused by high feed prices and weak global demand, and as Russia aims to become more self-sufficient in meat production.

 

US industry officials and analysts said they were disappointed in the quota cuts, but hoped Russia might raise the volumes during the year.

 

Russia set its annual import quota for US poultry at 600,000 tonnes, down from 750,000 tonnes in 2009. For pork, the quota was cut to 57,500 tonnes, down from 100,000 tonnes in 2009.

 

US exporters can ship pork to Russia outside the quota - at higher tariff rates - but usually only when the economy is strong, said Joe Schuele, a spokesman for the US Meat Export Federation.

 

Russia could decide to expand its quota later in the year if an outbreak of a deadly pig disease called African swine fever cuts into domestic production, said Dan Norcini, a hog trader based in Chicago.

 

Aside from the quota cut, US pork trade with Russia has been threatened by recent bans on pork from many US plants after Russia said it found high levels of an antibiotic residue.

 

The bans "had an immediate and devastating impact on our industry" and are not based on acceptable scientific standards, US Trade Representative Ron Kirk, noting that US officials are trying to get the bans lifted.

 

The 2010 quota cut for poultry was in line with what the US industry expected, said Jim Sumner, president of the US Poultry and Egg Export Council.

 

"We would like for it to be more, but we realize that Russia is continually increasing its domestic production and they look at imports as a way of balancing their supply," Sumner said.

 

US chicken companies should be able to make up for the smaller shipments to Russia, said Paul Aho, economist at the consulting firm Poultry Perspective.

 

But Russia also said it plans to further cut its quota for US poultry in 2011 to 446,400 tonnes, and again in 2012 to 409,200 tonnes.

 

The poultry industry and top US government officials have also stepped up efforts to work with Russian counterparts on concerns about antimicrobial chlorine rinses, routinely used in US plants to kill pathogens that can cause food poisoning.

 

Russia had threatened a year ago to cut off imports of U.S. poultry over the chlorine issue, but postponed its decision. The issue remains unsettled, and the US industry on Friday offered to conduct a joint study with Russian health officials to assure them the product is safe.

 

If not resolved by December 31, US shipments could be disrupted, Sumner said, noting he was confident the two countries could find a way to move forward.