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Russia Bans US Poultry

Russia has banned U.S. poultry imports as part of a decree signed by President Vladimir Putin, the country’s veterinary service said Wednesday. Putin earlier signed an order banning or limiting imports of agricultural products from countries which have imposed sanctions on Russia.

Putin ordered his government to come up with a list of goods to be banned for imports into Russia and to last one year, the Kremlin said. The order says the limits are being imposed “with the goal of guaranteeing the security of the Russian Federation” and calls for undertaking measures to guard against quick price hikes. The decision on U.S. and EU food import bans would be “quite substantial,” the veterinary service said.

The move follows the latest round of sanctions against Russia imposed by the European Union last week, which for the first time targeted entire sectors of the Russian economy.

The U.S. and the EU have accused Russia, which annexed Ukraine’s Crimean Peninsula in March, of fomenting tensions in eastern Ukraine by supplying arms and expertise to a pro-Moscow insurgency, and have imposed asset freezes and loan bans on a score of individuals and companies.

Some U.S. poultry producers, including Pilgrim’s Pride and Tyson Foods, were still trading in positive territory after the announcement.

via Russia banning US poultry imports on Putin’s order.

Global poultry prices are taking off in Q2, according to Rabobank’s quarterly poultry report.

This bullishness is driven by relative price support from high beef and pork prices alongside demand recovery and a more balanced supply and demand situation in most regions of the world.

The report also points to falling international feed prices, based on a good crop outlook for wheat in Europe and Australia, and for soy beans in the USA.

“Under improved global market conditions, led by the North American region, a slight increase in global chicken prices is expected,” says Rabobank analyst Nan-Dirk Mulder. “We see an increasingly balanced market, where supply discipline is more the order of the day and improving margins will be the likely result.

“However, markets remain volatile and any change in fundamentals, especially from the supply and feed side, will impact global prices. Suppliers should look to keep production growth disciplined.”

via Firmer outlook for poultry prices – 30/07/2014 – Farmers Weekly.

Thailand Bites into Brazilian Chicken Exports

THAILAND – Thailand looks set to return to a leading position in the global poultry market after the EU announced that it will end restrictions on imports of raw poultry meat from Thailand on 1 July 2012.

The end of the ban could cut prices for consumers at a time when they have been hard hit by inflation in other foodstuffs.

These are some of the main conclusions coming out of a new report from Rabobank ” The Return of Thai Raw Chicken – Global players need to change strategy.”

The restrictions on one of the world’s major poultry exporters followed an outbreak of bird flu in the country in 2003.

Japan also stopped importing Thai raw poultry and is widely expected to lift its own restrictions. Brazil is set to be particularly hard hit as it is currently the major supplier to both Japan and Europe.

The 2003 ban saw the poultry sector in Thailand lose 350,000 tonnes of export volume out of a total of 500,000 tonnes and suffer from years of overcapacity.

However, in recent years the industry has shifted its strategic focus to cooked processed poultry meat, for which exports were allowed. This strategy was so successful that the industry once again reached full capacity in 2010/2011, resulting in a first wave of investments.

The re-opening of the EU and Japanese markets could see Thailand’s raw chicken production grow by 20 per cent by 2015.

The EU and Japan have long favoured Thai products for their high quality and low prices.

via Thailand Bites into Brazilian Chicken Exports.

BRAZIL – Brazil’s broiler meat production is estimated to reach 13.3 million metric tons MMT this year as a result of domestic demand and a small recovery in exports.According to the USDAs International Egg and Poultry Review: Brazil, Brazils broiler meat production is influenced by the world economic uncertainties impacting some major export markets, as well as issues with some trade partners. Other factors include an over-valued Brazilian currency, a slowdown in the growth rate of domestic consumption, and higher costs of production due to higher corn prices.

Domestic consumption of broiler meat is expected to rise at a slower rate in 2012, up 3 per cent compared to 6 per cent in 2011, due to increases in disposable incomes of Brazilian consumers and broiler meat’s competitive price compared to other meats. Broiler meat exports are projected to rise by 3 per cent. The growth in exports is likely to be driven by higher sales of whole broilers in general, and chicken parts, in particular, to China and Hong Kong. Trade sources also expect higher exports to Egypt and Iraq in 2012.

via Brazil’s Chicken Production Forecast to Rise.

South Africa say Brazil are unlikely to approach WTO on poultry ban

South Africa doesn’t believe Brazil will approach the World Trade Organization about the African nation’s decision to impose higher tariffs on some poultry imports, Trade Minister Rob Davies said.

There is “no big crisis” with Brazil on poultry, Davies said today at a trade conference in Sun City, northwest of Johannesburg. “There has been a certain amount of exaggeration about whether this will go to the WTO or not,” Davies said.

Brazil’s poultry association said it would ask the government to approach the WTO about import charges South Africa imposed on the South American nation’s exports, it said in a Feb. 13 statement.

Import charges of 6 percent to 63 percent had been imposed on the poultry for six months, as initial information showed Brazilian producers were dumping products in South Africa and neighboring countries, Francois Dubbelman of Pretoria-based FC Dubbelman and Associates, which represents the South African Poultry Association, said in February.

via S. Africa Says Brazil Unlikely to Approach WTO on Poultry – Bloomberg.

Feb. 15 (Bloomberg) — Brazil’s poultry association said it will ask the government to approach the World Trade Organization about South Africa imposing higher tariffs on some imports from the South American nation.

These are “flagrant violations of the WTO’s anti-dumping agreement,” Ubabef Markets Director Francisco Turra said in a statement posted on the Sao Paulo-based organization’s website yesterday and dated Feb. 13. “It’s clear that South African importers’ responses and information from Ubabef about how the costs of the Brazilian products are calculated weren’t considered, besides other technical failures.”

Import charges of 6 percent to 63 percent have been imposed on the poultry for six months, as initial information showed Brazilian producers are dumping products in South Africa and neighboring countries, Francois Dubbelman of Pretoria-based FC Dubbelman and Associates, which represents the South African Poultry Association, said yesterday.

The South American producers include BRF Brasil Foods SA, the world’s biggest poultry exporter, and Seara Alimentos, the pork and poultry unit of Marfrig Alimentos SA, Latin America’s second-largest producer of beef. Brasil Foods declined to comment, the company said in an e-mailed response to a query today.

South Africa’s International Trade Administration Commission, which asked for the tariffs, will finalize its findings once interested parties have commented on the preliminary outcome, it said in its Jan. 30 report.

via Brazil Poultry Group to Approach WTO on South Africa Chicken – Businessweek.