Russia Throws Up New Roadblocks to U.S. Poultry Exports
Approved list of facilities have been voided.
Compiled by staff
Published: Aug 5, 2010
Three weeks after signing an agreement to resume poultry imports Russian officials have voided the lists of U.S. facilities that had been approved to export product.
Demand for chicken in Russia remains strong. CEO Don Jackson says Pilgrim's Pride has three plants filling Russian orders and hopes to add three more within 90 days.
"Within a few days we have sold out our entire August production value for our Russian approved plants with prices moving toward the 60 cent range," Jackson said. "We are now booking orders for September at prices above August."
Tyson Foods Vice President of International Sales Dwayne Rhodes says he hopes the trade flap can be resolved fairly quickly.
"Poultry exports to Russia like poultry exports to most foreign countries consist mainly of chicken leg quarters. In 2009 more than 19.5% of the chicken we produced in the United States was exported," Rhodes said. "Exporting the back of the bird is critical to keeping the U.S. chicken supply in better balance for overall demand. But due to impediments to our two largest poultry export markets, Russia and China, poultry exports are down for 2010."
The situation is concerning because leg quarters will be critical to profitability of U.S. chicken companies this fall. Russia is questioning whether some of the disinfectant rinses to be used in place of chlorine are compliant when it agreed to them just a few weeks ago.
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