US poultry exporters push for quick Russian deal

US poultry exporters are pushing for a quick resolution to re-access the Russian market to the point of dropping a key demand for a six-month transition period to phase out the use of chlorine-based treatments.

"We certainly hope there is a transition period, but if there isn't, let's get over it and let's start shipping," one US industry source said on March 22. "If it's the transition period holding this thing up, we can't hold out for months arguing the case for a transition period."

This source said that if a deal is not finalised soon, the US industry would be unable to fill the US allocation in Russia's overall poultry tariff rate quota (TRQ), an allocation set at 600,000 tonnes this year.

"Every day, every week that we're out of that market makes it more difficult to fill that TRQ," the source said. "We need to be back in our largest export market as soon as possible."

That US allocation makes up more than three-quarters of the overall TRQ of 780,000 tonnes and without US poultry products, Russia has sought to import poultry from other countries, including Thailand, Turkey and the Ukraine. For example, Russia this year has approved 21 poultry processing plants in Thailand for export of poultry products to Russia, according to an informed source.

One US industry source said that these countries would be unlikely to export poultry to Russia at as low of a price since the US provides Russia primarily with chicken leg quarters which can be offered at a value due to US consumer preference for breast meat.

Another industry source said that other countries simply could not produce as many poultry products as the US.

Earlier in the poultry talks between the US and Russia, which were launched in January, US poultry exporters pushed for a six-month transition period. They wanted Russia to accept US poultry treated with chlorine-based anti-microbial treatments (AMTs) as US industry worked to institute alternative treatments.

Industry sources said they are willing to limit that transition period to as little as one month, or abandon it entirely if a deal could be struck in the near term that would allow the resumption of US exports to the Russian market, valued at roughly US$800 million.