How Will Russian Meat Import Ban Affect World Markets?

Over the last week Russia closed the doors on imports of meat and food products from US, EU, Canada, Australia and Norway in reaction to sanctions imposed against over Ukraine.

The ban on top of the restrictions that had already prevented pork products from the EU entering Russia because of the discovery of African swine fever in Latvia, Lithuania and Poland and other bans on product from the US because of concerns over the use of the growth promoter ractopamine for certain meat products will have thrown the market into disarray.

There were placatory statements from the European Agriculture Commissioner this week, that the Common Agricultural Policy would support European farmers in the face of the trade ban.

And reports from the Canadian pig sector maintained that Russia could be the one to suffer more than the exporters. Much Canadian pig meat goes into Russian sausage production.

However, the move could see a shift in the market with Russia actively exploring South American sources for products that they have placed on the banned list.

Ecuador, Chile and Brazil seem set to enter the market to supply products from fruit and vegetables to dairy products and meat products.

Russia has also been seeking to make itself more self-sufficient in meat products –in particular pork and poultry – and the move by president Putin to place restrictions on imports could act to speed up the process if the government steps up its agricultural support.

If the situation deteriorates and tit-for-tat sanctions are put in place, the question could well arise over supplies of Russian grain later this year and the effect that any disruption in that market will have on global animal feed prices and meat prices.

In the meantime, Russia and the EU are still awaiting the decision of the World Trade Organisation disputes’ panel over the ban on imports of pig meat and pig meat products from the EU to Russia.