U.S. Poultry Exports Stumble

As of Jan. 19, Russia has effectively banned imports of U.S. poultry, typically exported as palletized breakbulk cargo, because U.S. processors rinse poultry with a chlorine antimicrobial treatment that Russian authorities say is unsafe. The Russian Federal Consumer Protection Service originally banned the use of chlorine poultry treatments in 2008 but delayed the measure’s start date until January 2010.

The EU has banned U.S. poultry imports since 1997 because of what it considers unsafe levels of chlorine. Russian authorities have said that the ban is not political and that they are simply conforming to EU standards. However, in addition to the fight over the chlorine rinse, Russia has cut its 2010 import quotas dramatically.

In fact, Russia may stop importing poultry completely by 2015, according to Prime Minister Vladimir Putin, gradually replacing imports with domestic production. Putin chided Russian producers for not investing enough in domestic production, according to the Moscow Times. Wholesale prices for U.S.-imported poultry have jumped 20 percent in Russia since the ban began, the newspaper reported.

Gregg Doud, chief economist for the National Cattlemen's Beef Association, told the California-based Capital Press that every month roughly 90,000 metric tons of U.S. poultry, primarily leg quarters, goes to Russia. If that poultry stays in the U.S instead, a glut could drive down domestic prices, he said.

Bill Mordecai, vice president of forwarder USA Cargo, said that several of his U.S. poultry shippers are “dead in the water” because of the ban. U.S. product accounted for 750,000 metric tons of all poultry consumed in Russia during 2009, or about 20 percent of the country’s poultry consumption, according to the Moscow Times. Even before the ban, Russia's 2010 import quota for U.S. poultry had been cut to 600,000 metric tons out of a total import quota of 780,000 metric tons. Russia’s goal is to decrease imports to 550,000 metric tons by 2012, the newspaper said.

The disputed chlorine rinse has been used to disinfect poultry in the U.S. for more than two decades. The World Health Organization, the United Nations’ Food and Agricultural Organization and other organizations have said that chlorine antimicrobial treatments are effective and safe, the Capital Press reported.

Putin said that if U.S. producers are unwilling to meet Russian standards they will find other poultry sources. According to international news sources, Russian importers are now talking with alternative suppliers in Europe and Thailand.