29.08.2008

Russia - USA

From September 1, Russia will reportedly ban poultry imports from 19 American producers, with the fate of another 29 plants hanging in the balance. The official reason for the ban is food health and safety concerns, after Russia claimed that tests found the chickens were stuffed with antibiotics and arsenic.
Russia is an important market for many poultry producers, including the nation's largest chicken producer, Pilgrim's Pride Inc., as well as Sanderson Farms Inc. and Tyson Foods Inc., the world's largest meat company. Russia makes up 33 percent of total U.S. chicken exports, making it the largest customer. In the first half of the year, U.S. producers shipped $395.7 million worth of broilers to Russia. That was up 42 percent from the previous year, while volume grew 20 percent.
Prime Minister Vladimir Putin had mentioned plans to impose the ban on Thursday (28/8), but denied any link with ongoing political disputes.
His statement came after the U.S. said it might scrap a civil nuclear deal with Russia as punishment for its military action in Georgia and recognition of Georgia's breakaway republics of South Ossetia and Abkhazia.
Rosselkhoznadzor (The Russian food safety authority) said the decision was a result of a joint Russia-U.S. inspection of poultry firms in late July and early August.
"The inspection also showed that many companies had not taken measures to remove flaws revealed during previous checks," the regulator said in a news release.
Around 120 companies will remain on the list of suppliers to Russia, but the regulator said 29 other firms face the same ban unless they raise their standards. 
The country has supplied 870,000 metric tons of the 1.2-million-metric-ton poultry quota set by Russia for 2008.
Russia has imposed several temporary bans on pork and poultry from various U.S. producers in recent years. Up to late 2006, the issue was a major stumbling block in bilateral negotiations on Russia's bid to join the World Trade Organization.