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TheBeefSite Newsletter - 13 August 2014

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TheBeefSite
Wednesday 13th August 2014.
Michael Priestley - Editor

Michael Priestley
Editor


Novus International

MSD Animal Health

Can Traders Find Another Russian Back Door?

Creative sellers will be looking at alternative trade routes into the Russian market for agricultural produce now that Ukraine, a previous ‘back door’ passage into the Russian market, is closed.

This is the assessment of two leading agricultural economists inferring that Ukraine has acted as a clandestine route into the Russian market in recent years when Russia has limited food imports.

Summing up recent Ukrainian buying patterns, Dr Steve Meyer of Paragon Economics and Len Steiner of Steiner consulting wrote: “Over the past few years Ukrainian imports of US meat and poultry have ‘surged’ every time Russia imposed restrictions.”

And in light of diplomatic tensions between Russia and Ukraine, they say Ukraine is ‘not at all likely’ to be a route in.

They say that this leaves Belarus – Russia’s biggest former soviet supplier – as the favourite to become the next ‘back door’.

In their daily Chicago Mercantile Exchange report, they wrote: “We’re pretty confident that some creative businesspeople are investigating such possibilities already.

“It might be wise to observe exports to Russia’s neighbours as this situation plays out.”

Meanwhile, US farmers are expected to hurt from Russia’s move, with a Texas economist sending warning singles to Texan ranchers and poultry farmers this week.

“In Texas, beef is a big export item and poultry is important, particularly dark meat items,” said Texas A&M international trade economist Dr Luis Ribera.

“Texas also produces some soybeans and horticultural crops, so those industries could be affected.”

Russia accounts for 10 per cent of all US exports, spending $1.3 billion annually on US food and agriculture, he added.

US International Trade Commission data has Russia as fifth pork buyer and eighth beef buyer to the US.

“There will be a ripple effect among all industries, everything from shipping and transportation to retailers,” he said. “There will be a multiplier in there, so the potential economic impact could be significant.”

But he added that the potential inflation in Russia, already at 7.9 per cent for the first half of 2014 could spell trouble for consumers there.

“Food prices have the potential to go way up as result of this ban. The issue there is this will hurt their own people as 40 per cent of their total food supply is imported.”




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Global Beef Industry News

   Colombia

Colombian Efforts Mount Against TB, Brucellosis

   Global

Animal Feed Additives Market to Reach $20 Billion by 2020
OIE Discusses Disease Eradication for the Americas
Food Security Summit on Agricultural Solutions in Asia Pacific

   Brazil

Agribusiness Exports Reach $9.61 Billion in July

   New Zealand

New Zealand Sees Improved Cattle Returns

   United Kingdom

New Agency to Safeguard Animal Plant Health
Steady Supplies Back on Last Year
Dry Summer Will Help Fluke Picture Not Cure It
How Do You Approach Disease Control on Your Farm?
Farming Growth Plan Needed to Reverse Declining Self-Sufficiency

   Australia

Experts Meet to Solve Infectious Disease Challenges
Australia Counts the Cost of Russian Food Import Ban
Weekly Australian Cattle Summary

   India

Odisha to Set Up Veterinary University
India Unveils Bovine Breeding Programme

   United States

WASDE Report Bearish for Soybeans, Slightly Bullish for Corn, Neutral Wheat
Veternarian Mobile App Being Adopted Nationwide
US Pork, Beef Exports Maintain Record Pace in June
Cattle Futures: Cattle Closed Down on Thursday
Land O'Lakes Reports Record Sales
Tyson Foods Offers New Senior Notes
Cattle Futures: Resilient Bulls See Cattle Close Higher, Wednesday

   Germany

World Nutrition Forum: Exploring Sustain:Ability and Limits to Growth
Antibiotics Use Falls Again in Germany
EuroTier 2014: Stands Already Booked by Over 2000 Exhibitors

   China

VIV China and China International Summit Team Up

   Bulgaria

140 New Bluetongue Cases Reported in Bulgaria

   Russian Federation

Common Agricultural Policy Should Protect Farmers from Russian Ban
Russia Reacts to Sanctions With Food Imports Ban

   Argentina

Argentina Granted EU Grain-Fed Beef Quota Access

   Ireland

Advice Line for Irish Farmers Hit by Russian Ban

   European Union

Food Waste Promise with New Consumer App

   Macedonia

Relentless Bluetongue Confirmed in Macedonia

Events/Promotions

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