Rosselkhoznadzor - Press http://www.fsvps.ru Rosselkhoznadzor - Press en Rosselkhoznadzor 2007 - 2009 webadmin@fsvps.ru (Web Admin) webadmin@fsvps.ru (Web Admin) Russia: agiotage on food markets to be the speculation http://www.fsvps.ru/fsvps/press/1594.html?_language=en According to Elena Skrynnik, the Minister of Agriculture of the Russian Federation, the agiotage, which appeared after the unheard droughts in many Russian regions, is the speculation only.

On August 27, the Minister announced that Russia will completely satisfy the domestic demands with last year grains stocks. The domestic consumption totals 77-78 mln tonnes, according to the recent data, to date Russia harvested 42 mln tonnes. According to the Ministry request, the Russian Federal Statistics Service checked out the data about grains capacities, which are available in the country since the last year. Taking into account the capacities (as of June 1 – 25.8 mln tonnes) which the private households have, the general grain volumes total nearly 70 mln tonnes.

The Siberia and the Ural regions have just started the harvesting campaign. According to the forecast, these regions will harvest rather good crop volumes, stated the Minister. Vladimir Putin, the Chairman of the Government, announced two crop forecasts – pessimistic, which totals 60 mln tonnes, and optimistic – 65-67 mln tonnes. To date, Russian agrarians walk along the optimistic path, noted E.Skrynnik.

Buckwheat consumption in Russia totals 515 thsd tonnes per year. In 2009, the country harvested 564 thsd tonnes of the grain, import volumes totaled 1.1 thsd tonnes, the exports – 6.7 thsd tonnes. As of July 1, 2010, buckwheat stocks totaled 43 thsd tonnes. In the current year, the country plans to produce nearly 450 thsd tonnes, according to the estimations of the state experts. So, there is almost no buckwheat deficit in the country, added the Minister.

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http://www.fsvps.ru/fsvps/press/1594.html?_language=en http://www.agrimarket.info/ Thu, 02 Sep 2010 12:00:00 +0300
US senators call for Russia poultry exports http://www.fsvps.ru/fsvps/press/1593.html?_language=en US senators are calling for a June agreement allowing the resumption of US poultry exports to Russia be implemented "without further delay".

In a letter sent to Russia's ambassador to Washington, Sergey Kislyak, 30 US senators have expressed "deep concern with respect to Russia's failure to honor its recent commitment to allow US poultry products back into Russia."

"These actions are a setback to our countries' trade relations. We ask you to honor the commitment our two presidents made less than two months ago and implement the agreement without further delay."

The US Department of Agriculture gave the green light in late July for US poultry exporters to resume shipments to Russia after nearly a seven-month ban by what was once the largest foreign market for US chicken.

On January 1, Russia banned the import of chicken treated with chlorinated water, a procedure commonly used by US producers to disinfect. However, in late June US President Obama and Russian President Dmitry Medvedev announced a deal to end the dispute after talks at the White House.

US poultry exports to Russia averaged more than 800 million dollars in value over the past three years -- the largest such export market -- and accounted for some 500,000 jobs in the United States.

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http://www.fsvps.ru/fsvps/press/1593.html?_language=en http://www.worldpoultry.net/ Thu, 02 Sep 2010 12:00:00 +0300
Russia - Buying US poultry again http://www.fsvps.ru/fsvps/press/1592.html?_language=en Sanderson Farms, Inc., said Russia resumed imports of the company’s poultry products after the country’s six-month ban on U.S. chicken led to swelling supplies and weaker prices.

The end of Russia’s poultry ban, announced in June, may help beef and pork producers, trimming supplies of a cheaper, competing meat during a time of consumer belt-tightening, analysts say.

Image provided by Prime Equipment Group

Sanderson Farms’ poultry plant in Collins, Miss., was approved Aug. 18 for imports and is currently packing product for Russia, Lampkin Butts, the company’s chief operating officer, said during a conference call yesterday.

Another 11 plants were also approved, and Sanderson is working on gaining approval for two others, Butts said during the call, which followed the release of Sanderson’s quarterly financial results.

“There remain differences of opinions between our governments on various interpretations of the agreement, and those still must be reconciled,” Butts said. “The good news is that product is once again moving to Russia.”

Russia agreed to end a ban on U.S. poultry that began Jan. 1 following talks between President Obama and his Russian counterpart, Dmitry Medvedev. The ban largely cut off the U.S. from its biggest foreign poultry customer in recent years.

U.S. broiler exports to Russia tumbled 90 percent, to 75.6 million pounds, during the first half of the year, compared to the same period in 2009, according to government data.

During the previous five years, the U.S. broiler exports to Russia averaged of 1.71 billion pounds.

U.S. beef and pork exports are already up over last year, and Russia may provide an additional boost, analysts said.

Additionally, Russia is in the grips of a severe drought that's expected to slash the country's grain production. If global market prices for feed grains get too high, Russia may boost U.S. meat imports, said Mike Zuzolo, president of Global Commodity Analytics & Consulting in Lafayette, Ind.

“If feed grain prices go too high between now and the end of the year, or the shipping costs are more prohibitive, then I think Russia would likely contemplate just buying the meat and send it over in freezer container ships,” Zuzolo said.

As Russia's domestic feed grain supplies tighten, the country's import potential for pork “could be just as significant as that for poultry and beef, especially if they don’t see significant soil replenishment for their new-crop wheat in the next two weeks,” Zuzolo said.

Russia’s poultry ban stemmed from a dispute over the amount of chlorine U.S. processors used to disinfect the meat. Under the agreement, the U.S Department of Agriculture will publish on its website information on which disinfectants are approved by Russia for use on poultry and other food.

Stronger exports combined with smaller livestock herds to boost beef and pork prices this year.

Pork carcass cutout values, an industry benchmark reflecting wholesale prices, reached an all-time high yesterday at 95.67 cents a pound, according to the USDA. Cutouts are up more than 80 percent from a year ago.

Sanderson Farms executives also expressed caution over the economy, indicating that demand from restaurants and other foodservice buyers is expected to remain soft at least into next year.

“We continue to believe we will not see a meaningful rebound in food service demand until well into calendar 2011 at the earliest, and then only if employment numbers begin to improve,” chief executive officer Joe F. Sanderson, Jr., said during the call.

“Consumers need to get their jobs and confidence back before they start eating out again,” Sanderson said.

Laural, Miss.-based Sanderson Farms, one of the largest U.S. poultry processors, said net income during the three months ended July 31 fell 16 percent to $36.1 million as the Russia ban led to weaker chicken prices. Sales fell 3.1 percent to $489.1 million.

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http://www.fsvps.ru/fsvps/press/1592.html?_language=en http://www.meattradenewsdaily.co.uk/ Thu, 02 Sep 2010 12:00:00 +0300
Russia - The grain crisis http://www.fsvps.ru/fsvps/press/1591.html?_language=en Russia admits crop loss of 38%; self sufficient in 2010 but no reserves for 2011 Russia has enough grain to cover its domestic needs after harvesting this year 38% less than the previous crop, a senior official said Monday. However markets believe Russia could be forced to import several million tons to ensure grain reserves until the following 2011 harvest

The world’s third-largest wheat exporter was hit by a severe drought in many producing regions that destroyed or diminished large parts of its crop and raised the issue of imports. Analysts have estimated imports of 1.5 million to 2 million tons may be needed, while a report from a Russian broker said the volume could be closer to 5 million tons.

However an Agriculture Ministry spokesman has denied the report. Deputy Agriculture Minister Alexander Petrikov said Russia had harvested 40.3 million tons of grain bunker weight by Aug. 19.

He said that so far 19.3 million hectares or 48 percent of the sown area had been harvested with average yields falling to 2.08 tons per hectare from 2.69 tons per hectare a year ago, Aug. 19, 2009.

Bunker weight is normally 7 to 8% higher than clean weight obtained after grain is cleaned and dried. But the difference may be lower in hot and dry years like this one. Final crop outcome is calculated by clean weight.

Petrikov said Russia had sufficient grain to cover its needs. “I must say that Russia’s domestic needs are 77 million tons,” he said. “With stocks of some 23 million tons and intervention stocks of 9.5 million tons, these will more than cover domestic demand “.

Petrikov confirmed the ministry’s 2010 crop forecast of 65 to 67 million tons given an optimistic scenario and 60 million tons if a poor showing is confirmed.

Russia’s carry-over stocks, however, which had been previously estimated by the State Statistics Service at 21.7 million tons and by the Agriculture Ministry at 24 million tons as of July 1, already include the 9.5 million tons of intervention stocks.

With a crop of 60 million tons, carry-over stocks of 23 million and consumption of 77 million tons, as well as 3.6 million tons already exported, according to IKAR analysts, Russia will be left with carry-over stocks of just 2.4 million tons by the end of the current crop year on June 30, 2011.

Taking into account the need to allocate some 11 million to 12 million tons for winter sowing due to start in August, Russia appears unable to go ahead without imports. Russia currently has a ban on grain exports which should be lifted by December 31.

According to original planning Russia was planning to increase grain exports in 2010. Russia has been harvesting an average 100 million tons of grains with domestic consumption almost 80 million tons.

”The export of grain will be slightly more than in 2009 and reach about 22-22.5 million tons” said First Vice-Prime Minister Viktor Zubkov

Russia has a substantial export potential on the international grain markets and can continuously export up to 30 million tonnes of grain a year, Zubkov said.

Russia exported 23 million tones of grain in 2008 and 20 million tones in 2009. “I think we can continue to export volumes within that range of 23-25 and up to 30 million tonnes,” he said.

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http://www.fsvps.ru/fsvps/press/1591.html?_language=en http://www.meattradenewsdaily.co.uk/ Thu, 02 Sep 2010 12:00:00 +0300
Russia - Concerns over US poultry and eggs http://www.fsvps.ru/fsvps/press/1590.html?_language=en Rosselkhoznadzor (Russian Ministry of Agriculture sub agency) expressed concerns about the detection of salmonellosis agent in a large consignment of chicken eggs that was offered for sale in the USA.

Rosselkhoznadzor has requested the American Food Safety and Inspection Service (FSIS) to provide prompt information as to indicate the plants where contaminated products were produced and the reason for the contamination of products with bacteria of the genus Salmonella.

It also wants information about the measures taken by the authorities of the USA aimed at prevention of further spread of the infection.

Ban

In a news report the Chief Sanitary Inspector of Russia, Gennady Onishchenko, stated: "In light of reports in the US media of an outbreak of salmonella caused by contaminated eggs, we are assessing the situation to find out if there is a need to toughen [regulations on] poultry imports from the United States.

A ban on poultry imports from the US has recently been lifted from 72 US companies, but a remaining 15 companies that do not meet the country's safety requirements are still under the ban restriction.

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http://www.fsvps.ru/fsvps/press/1590.html?_language=en http://www.meattradenewsdaily.co.uk/ Wed, 01 Sep 2010 12:00:00 +0300
Russia Approves Four More US Plants for Exports http://www.fsvps.ru/fsvps/press/1585.html?_language=en RUSSIA - Russia has lifted the ban on poultry imports from four more US plants.

Russia's sanitary watchdog has approved four more US facilities for the export of poultry to Russia, leaving a ban in place for just five plants, Rosselkhoznadzor said in a statement on 27 August.

RIA Novosti reports that on 16 August, Russia lifted a ban on poultry imports from 68 US plants whose production processes met Russian requirements. The US side complained that 60 were merely cold-storage facilities and 19 of 27 processing plants were still barred from exports. After the latest move, 22 of 27 processing plants are approved for exports to Russia.

Last week, Russia expressed fears that poultry exported to the country from the US may contain salmonella after some 550 million eggs were recalled in the US that were distributed in 14 different states.

Russia asked the American Food and Drug Administration to submit a list of the farms that announced product recalls.

The US Poultry and Egg Export Council (USAPEEC) assured that all poultry meat products exported to Russia contain no salmonella bacteria.

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http://www.fsvps.ru/fsvps/press/1585.html?_language=en ThePoultrySite Tue, 31 Aug 2010 12:00:00 +0300
Russia - More Russian Roulette with US export licences http://www.fsvps.ru/fsvps/press/1589.html?_language=en Russia has reinstated as eligible exporters Smithfield Foods’ Tar Heel, N.C., and Clinton, N.C., pork plants, only days after banning two other company-owned plants, according to USDA’s Food Safety and Inspection Service website.

Farmland Foods facilities in Milan, Mo., and Denison, Iowa, can ship product produced in those facilities through Aug. 26, but come Aug. 27 they no longer will be eligible to export to Russia, FSIS said late last week.

Russia put the brakes on Smithfield’s Tar Heel, N.C., and Clinton, N.C., plants in late July and early August, respectively. A government source told Meatingplace at the time that USDA believed the problem resulted from a misreading of certificate provisions.

Moscow also suspended Seaboard’s Guymon, Okla., plant last month.

These establishments had been re-listed as eligible exporters to Russia in March. They were among a slew of U.S. pork exporters banned by Russia based on what that country said were protocol violations discovered during a previous industry-wide audit.

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http://www.fsvps.ru/fsvps/press/1589.html?_language=en http://www.meattradenewsdaily.co.uk/ Sun, 29 Aug 2010 12:00:00 +0300
Russia - Poultry from Brazil http://www.fsvps.ru/fsvps/press/1588.html?_language=en Russia's Federal Service for Veterinary and Phytosanitary Surveillance, Rosselkhoznadzor, may impose restrictions on meat imports from Brazil if its veterinary service fails to inspect as soon as possible Brazilian plants supplying meat and poultry to Russia, the watchdog said on Wednesday.

Rosselkhoznadzor has already sent a second necessary official notification to the Brazilian government, it said.Image provided by Prime Equipment Group

In October 2009, the National Veterinary Service of Brazil guaranteed that all the veterinary and sanitary requirements of the Russian legislation would be fully met during the export of animal products to Russia.

"Rosselkhoznadzor expresses deep concern over the absence of a response to the previous letter concerning the coordination of the inspection terms sent to the Veterinary Service of Brazil at the beginning of June this year," Rosselkhoznadzor said in a statement.

Before inspections at Brazilian plants are launched, Rosselkhoznadzor has tightened the monitoring of meat products from Brazil to the Russian market, it said.

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http://www.fsvps.ru/fsvps/press/1588.html?_language=en http://www.meattradenewsdaily.co.uk/ Sun, 29 Aug 2010 12:00:00 +0300
Russia - A wake up call for Russian agriculture http://www.fsvps.ru/fsvps/press/1587.html?_language=en Russian grain imports are likely to soar after the country's worst drought in more than a century damaged its harvest and forced it to ban exports, analysts said on Thursday.

Analysts estimate that Russia, usually a major grain exporter, may have to import 1.5-2.2 million tonnes this year after the worst drought in more than a century damaged its harvest, but a report in Vedomosti daily said Russia could import at least 5 million tonnes of grain this year.

European milling wheat futures rose sharply in opening trade on Thursday, lifted by prospects that Russia will have to resort to hefty imports.

"We currently estimate domestic seasonal grain imports at 2.2 million tonnes as a minimal figure," Dmitry Rylko, director of the Institute for Agricultural Market Studies (IKAR) told Reuters.

He expected most of the imports to come from Kazakhstan and Ukraine, which is also considering curbing exports after its grain crops were hit by severe frosts and a scorching summer.

Russia, which was a major grain exporter last year, imported 94,600 tonnes of wheat, 30,700 tonnes of barley and 38,000 tonnes of maize in the 2009 calendar year, according to customs data. Kazakhstan and Ukraine were the main suppliers.

Andrei Sizov Sr., CEO of SovEcon agricultural analysts, told Reuters Russian grain imports "may rise to some 1.5 million tonnes from around 400,000 tonnes this year".

Kazakhstan's agriculture ministry said on Thursday it plans to export 8 million tonnes of grain in the current marketing year, of which 2 million tonnes would go to Russia, Iran and other countries.

Russia's deadly heatwave is estimated to have destroyed a quarter of its grain crop and could shave $14 billion off this year's gross domestic product. It has banned grain exports from Aug 15 until Dec. 31 to curb rising prices.

Russia's total grain crop is officially expected to reach 60-65 million tonnes, although some analysts believe it may fall below 60 million tonnes. The 2009 harvest was 97 million tonnes. (Additional reporting by Alfred Kueppers; editing by Sue Thomas)

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http://www.fsvps.ru/fsvps/press/1587.html?_language=en http://www.meattradenewsdaily.co.uk/ Fri, 27 Aug 2010 12:00:00 +0300
Russia Reports Eight New Outbreaks of ASF http://www.fsvps.ru/fsvps/press/1586.html?_language=en RUSSIA - The Russian veterinary authorities have reported eight new outbreaks of African swine fever in the country.

RUSSIA - The Russian veterinary authorities have reported eight new outbreaks of African swine fever in the country.

The World Organisation for Animal Health (OIE) received follow-up report no. 39 on 26 August. According to the report, the outbreak occured in swine and in wild boar.

In the case of swine, a total of two cases were identified and 15761 were found susceptible to the disease. In the case of the wild species, six animals were affected by the ASF virus.

The source of the outbreak is currently under investigation.

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http://www.fsvps.ru/fsvps/press/1586.html?_language=en ThePigSite Fri, 27 Aug 2010 12:00:00 +0300
Russia - Poultry from Brazil http://www.fsvps.ru/fsvps/press/1575.html?_language=en Russia's Federal Service for Veterinary and Phytosanitary Surveillance, Rosselkhoznadzor, may impose restrictions on meat imports from Brazil if its veterinary service fails to inspect as soon as possible Brazilian plants supplying meat and poultry to Russia, the watchdog said on Wednesday.

Rosselkhoznadzor has already sent a second necessary official notification to the Brazilian government, it said.Image provided by Prime Equipment Group

In October 2009, the National Veterinary Service of Brazil guaranteed that all the veterinary and sanitary requirements of the Russian legislation would be fully met during the export of animal products to Russia.

"Rosselkhoznadzor expresses deep concern over the absence of a response to the previous letter concerning the coordination of the inspection terms sent to the Veterinary Service of Brazil at the beginning of June this year," Rosselkhoznadzor said in a statement.

Before inspections at Brazilian plants are launched, Rosselkhoznadzor has tightened the monitoring of meat products from Brazil to the Russian market, it said.

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http://www.fsvps.ru/fsvps/press/1575.html?_language=en http://www.meattradenewsdaily.co.uk/ Thu, 26 Aug 2010 12:00:00 +0300
Russia - More Russian Roulette with US export licences http://www.fsvps.ru/fsvps/press/1574.html?_language=en Russia has reinstated as eligible exporters Smithfield Foods’ Tar Heel, N.C., and Clinton, N.C., pork plants, only days after banning two other company-owned plants, according to USDA’s Food Safety and Inspection Service website.

Farmland Foods facilities in Milan, Mo., and Denison, Iowa, can ship product produced in those facilities through Aug. 26, but come Aug. 27 they no longer will be eligible to export to Russia, FSIS said late last week.

Russia put the brakes on Smithfield’s Tar Heel, N.C., and Clinton, N.C., plants in late July and early August, respectively. A government source told Meatingplace at the time that USDA believed the problem resulted from a misreading of certificate provisions.

Moscow also suspended Seaboard’s Guymon, Okla., plant last month.

These establishments had been re-listed as eligible exporters to Russia in March. They were among a slew of U.S. pork exporters banned by Russia based on what that country said were protocol violations discovered during a previous industry-wide audit.

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http://www.fsvps.ru/fsvps/press/1574.html?_language=en http://www.meattradenewsdaily.co.uk/ Thu, 26 Aug 2010 12:00:00 +0300
Russia: agricultural producers to have nothing to sell in the new season http://www.fsvps.ru/fsvps/press/1577.html?_language=en According to preliminary results of the polling of APK-Inform Agency, most of agricultural producers of the suffered from the droughts regions of the Russian Federation will leave the major part of harvest volumes for own requirements (own processing, cattle-breeding, seed material).

Thus, nearly 14% of Russian agrarians announced that they would use the full crop volume for own requirements. Besides, 11% of the questioned agrarians will use crop part (except of own consumption) for shares payment and selling to trading organizations – nearly 65% from the harvested volumes, they will use nearly 22% of the harvested volumes for own requirements.

About 9% of the companies announced that the received crop volumes will satisfy both own requirements and shares payments.

We should also note that 23% of the questioned agricultural producers from 11 regions, which were most suffered from droughts, stated that due to crop perishing they do not have harvest volumes for selling.

The major share of agrarians (27%) has not determine the new crop selling channels yet, and will take the decision after the harvesting campaign completing.

During the polling, the specialists of APK-Inform will interview 290 enterprises of the Republic of Bashkortostan, the Republic of Tatarstan, Orenburgh, Samara, Saratov, Voronezh, Tambov, Belgorod, Chelyabinsk, Kurgansk and Volgograd oblasts.

Results of the polling will become the base of the new crop forecast.

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http://www.fsvps.ru/fsvps/press/1577.html?_language=en AgriMarket.Info Wed, 25 Aug 2010 12:00:00 +0300
Pork Commentary: Road Trip to Russia http://www.fsvps.ru/fsvps/press/1569.html?_language=en RUSSIA - This week, Jim Long writes, "This past week we spent in Russia."

Our Observations:

* Russia’s economy is showing vitality if the number of buildings under construction is any indication.

* The Russian Market Hog Price is up to 85 rubles a kilogram or about US $1.25 liveweight a pound. Top producers are making over US $150 per head.

* Wheat is approximately US $4.00 or US $160 tonne in the Southern Kuban region 1,000 miles south of Moscow it is about US $5.00 a bushel in Voronezh, half way between Moscow and Kuban.

* Soy meal is US $500 a ton.

* When we were in Moscow Sunday, 15 August, the city was covered with smoke caused by forest fires in the area. It was nasty. Since then the weather has cooled and it has rained some and there are few if any forest fires. On Saturday the temperature was 65°F.

* In the Voronezh region, 500 miles south of Moscow as we travelled around we saw many areas with forest fire damage. The scale of the fires we saw were not individually large with many just a few hectares or acres, but there were lots of them. Some houses were burned out.

* Voronezh has soil like Illinois. It is black earth, the drought has been intensive. Record high temperatures in the 40°C or 104°F. and no rain for 6 weeks. We were in corn fields with 4 inch corn cobs. The only time I saw crop damage like this was in Northern Indiana several years ago.

* The wheat crop had been harvested but it was only about 40 per cent of normal in the Voronezh region. Russian people told us the heat and lack of rainfall as unprecedented.

* A week ago the Russian Government banned the export of grains until January 2011. Several producers told us they would not sell grain until the embargo is lifted. If non–sales happen to any great extent the Government’s attempt to limit grain prices might not work.

* In the Kuban district in the south between the Black and Caspian Sea the wheat crop was harvested before the drought took a major toll. Yields in that region were down but not by much (60 – 70 bushels per acre). Currently seeding has begun for fall wheat. In Kuban, corn and sunflower crops have been hit by the drought being later crops.

* One farm operation we visited had a large cropping enterprise with just less than 450,000 acres (200,000 hectares). 59 new John Deere Combines and 63 John Deere tractors. We have to admit we never thought in our life we would be discussing where to build a new swine barn in a 100,000 acre tract of land (50,000 hectares). Biosecurity distance is under control.

* In Russia there is a wide range in productivity on swine farms. Some 12 pigs per year, others 24 plus. With the higher grain prices and the economic shock it will cause in some operations we expect there could be several low productivity producers go out of business. On the other hand, top producers are doing well. A 6,000 sow operation with Genesus Genetics is reporting to us 24.3 hogs marketed. In this operation we had placed full time Genesus management and a complete training program. With super high hog prices and 24 plus hogs per year per sow. It is happy days!!

* As I wrote last week, I am travelling with my 13 year old son. It is an eye opening experience for him. Different culture, different language, and a different economic model. It is a good education. As per usual, when we travel we have been treated well by our hosts. I will always marvel on how Ag – people in general are so hospitable around the world. In one town of 70,000 people in Voronezh the police chief heard we were there. They don’t get many foreigners. He came to our hotel, introduced himself, and insisted we visit their new hockey arena (he’s a goalie), after he took us to a huge fertilizer facility with 3,000 employees. Russian’s like American’s are proud of their community.

This coming week we will be visiting Prague and the heart of Ukraine’s grain production.

Other Observations

Statistics Canada released 1 July Inventory Report. No big surprise as Canada’s swine inventory countries to decline year over year. Market hogs are down about 300,000 head while the sow inventory has declined over 60,000. Live exports to the US were down April – June about 200,000 in the quarter year over year. The bottom line is smaller sow herd, smaller inventory and smaller exports. This is price supportive now and in the future.

In the last two weeks prices in Brazil have risen 10 per cent across the country. Prices in the South – East are US $1.70 per kilogram live weight (75 cents live weight per pound) and in the South, US $1.40 a kilogram (about 65 US cents per pound). As we have written before, Brazil and North America are the big hitters in Global Pork Exports. To have high prices both countries need to have prices not undercutting the other.

Last week in China the price of pork had risen for 10 straight weeks and hit 17.09 guan per kilogram (US $1.10 per pound). Reports say the uptrend in pork prices was due to an outbreak of diseases. The rise in breeding costs, Government policies and the impact of the flood in some regions.

Summary

US hog prices are holding in the low 80’s lean per pound. We expect a seasonal price decline but we are buoyed by the prospect of prices staying strong. Canada’s hog supply is down. Brazil’s prices are up (meaning supply is down) and China’s prices are up (supply down). Less pork always leads to better prices.

Author: Jim Long, President & CEO, Genesus Genetics

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http://www.fsvps.ru/fsvps/press/1569.html?_language=en www.genesus.com. Wed, 25 Aug 2010 12:00:00 +0300
Russian Ministry of Agriculture requests prompt info about salmonella eggs http://www.fsvps.ru/fsvps/press/1576.html?_language=en Rosselkhoznadzor (Russian Ministry of Agriculture sub agency) expressed concerns about the detection of salmonellosis agent in a large consignment of chicken eggs that was offered for sale in the USA.

Rosselkhoznadzor has requested the American Food Safety and Inspection Service (FSIS) to provide prompt information as to indicate the plants where contaminated products were produced and the reason for the contamination of products with bacteria of the genus Salmonella.

It also wants information about the measures taken by the authorities of the USA aimed at prevention of further spread of the infection.

Ban

In a news report the Chief Sanitary Inspector of Russia, Gennady Onishchenko, stated: "In light of reports in the US media of an outbreak of salmonella caused by contaminated eggs, we are assessing the situation to find out if there is a need to toughen [regulations on] poultry imports from the United States.

A ban on poultry imports from the US has recently been lifted from 72 US companies, but a remaining 15 companies that do not meet the country's safety requirements are still under the ban restriction.

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http://www.fsvps.ru/fsvps/press/1576.html?_language=en http://www.worldpoultry.net/ Tue, 24 Aug 2010 12:00:00 +0300
Russia - The global effect of the drought http://www.fsvps.ru/fsvps/press/1573.html?_language=en The world’s appetite for meat, flour and ethanol is expanding faster than the supply of the crops needed to produce them, eroding inventories and increasing the chance of accelerating food prices.

Wheat stockpiles might slip to a two-year low as demand rises and a drought damages the crop in Russia, whose exports will plunge 84 percent, the Department of Agriculture said Thursday. Inventories of corn, used to feed livestock and make fuel, will be little changed from a year earlier, even as output rises to a record, the USDA said.

Russia’s worst dry spell in 50 years sent Chicago wheat futures to a 23-month high Aug. 6. Corn prices are up 24 percent in the past year, as ethanol mills use 35 percent of the grain produced in the United States, the world’s largest exporter, and rising global incomes lead to more beef and pork consumption.

“The world doesn’t have enough exportable supplies to meet demand” for wheat and feed grains, said John Macintosh, 61, a vice president at Rand Financial Services Inc. in Chicago who has been trading agricultural commodities since he was with Continental Grain in 1973.

Russia, the third-largest wheat exporter last year, will ban shipments starting Sunday after concluding that its grain harvest may plunge 38 percent this year to 60 million metric tons. Dmitry Rylko, a director at the Moscow-based Institute for Agricultural Market Studies, said Wednesday the estimate might be cut further because of the worsening drought.

Ukraine, the world’s biggest barley exporter, might impose export quotas on 5 million metric tons of wheat and barley, effective Sept. 15, Volodymyr Klymenko, the head of the country’s grain association, said Thursday.

World food prices rose for the first time in three months in July on higher costs for cereals and sugar, the United Nations’ Food and Agriculture Organization said.

The USDA said July 23 that meat prices will rise faster than expected this year at 2 percent to 3 percent.

Another global food crisis is possible if wheat drives the prices higher for other staples, according to Franciscus Welirang, chairman of the Flour Mills Association in Indonesia, the nation’s largest buyer of the grain.

A prolonged drought may further erode supplies by damaging next year’s crop.

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http://www.fsvps.ru/fsvps/press/1573.html?_language=en http://www.meattradenewsdaily.co.uk/ Mon, 23 Aug 2010 12:00:00 +0300
Russia - 68 US premises cleared for export but still no movement http://www.fsvps.ru/fsvps/press/1572.html?_language=en A Russian government official on Friday indicated Russia would start accepting poultry from 68 U.S. facilities starting Aug. 16, but U.S. officials said only eight of those are slaughter or processing plants and the rest are cold storage facilities, according to media reports.

Russia’s Interfax news agency quoted Russian Agriculture Ministry spokesperson Oleg Aksyonov as saying Friday that imports could begin Aug. 16 from 68 out of a total of 87 facilities proposed by the U.S. officials.

Reuters, however, quoted a statement from the U.S. government team as saying Russia’s new approval list only includes eight of the 27 poultry slaughter and processing plants USDA has determined should be eligible to ship to Russia, the rest of the list being comprised of cold storage plants.

Image provided by Prime Equipment Group

Neither report listed any of the facilities by name.

The reports are the latest in the saga since a deal was signed June 24 between President Obama and Russian President Dmitry Medvedev to lift an effective ban on U.S. poultry that began in January when Russia stopped accepting poultry treated with a chlorine rinse.

Under the terms of the June agreement, three other pathogen reducing rinses were approved and some U.S. poultry plants began using those for poultry processed to ship to Russia. Two weeks ago, however, Russian officials said they may now need to inspect those plants first, a move U.S. officials said was outside the terms of the agreement.

Implications

Chicken leg quarter prices hang in the balance of these discussions, as Russia is a major importer of these parts.

According to Stephens Inc. analyst Farha Aslam, a 1 cent per pound move in leg quarter prices has an impact of 15 cents to 20 cents per share on Sanderson Farms earnings and an impact of 3 cents to 5 cents per share on Tyson’s earnings.

In a note to investors, Aslam said there are also implications for Hormel Foods and Smithfield Foods if Russia starts importing poultry again, which would reduce overall protein supplies in the U.S. market.

“We are hearing that Russian demand (for leg quarters) is strong given the cold storage supplies in Russia are empty,” she wrote in a note to investors. Aslam predicted that once U.S. poultry starts shipping to Russia again, a premium on leg quarter prices could last a few months.

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http://www.fsvps.ru/fsvps/press/1572.html?_language=en http://www.meattradenewsdaily.co.uk/ Fri, 20 Aug 2010 12:00:00 +0300
Russia - Buying US grain http://www.fsvps.ru/fsvps/press/1571.html?_language=en The United States is likely to make up for the shortfall in Russian grain production brought on by drought and wildfires, the Russian agriculture minister said.

Record-breaking temperatures in Russia are complicating efforts to address raging fires sweeping through the country. Moscow said around 26.7 million acres of crops were wiped out by drought and wildfires, causing Russian grain production estimates for 2010 to plummet 38 percent.

Moscow, the world's fourth-largest grain exporter, imposed a ban on grain exports effective Sunday. With grain exporting countries Ukraine and Kazakhstan also hit by drought, the United States will have to make up the difference, Russia's state-run news agency RIA Novosti reports.

"If any (country) is going to take our export potential, it will be the United States," Russian Agriculture Minister Yelena Skrynnik was quoted as saying.

Russia stands to lose around $15 billion -- around 1 percent of its gross domestic product -- from grain losses in 2010. Moscow said the shortage from Russia is unlikely to impact short-term food prices, however.

Moscow said the export ban would be reviewed in October.

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http://www.fsvps.ru/fsvps/press/1571.html?_language=en meattradenewsdaily.co.uk Thu, 19 Aug 2010 12:00:00 +0300
Russia - The wheat crisis http://www.fsvps.ru/fsvps/press/1570.html?_language=en Last week, Moscow announced a ban on grain exports due to a severe drought that has reduced this year's estimated harvest by a third.

According to the Associated Press, Russian news agencies quoted Deputy Prime Minister Viktor Zubkov as saying Tuesday that the government will "look into the possibility" of lifting the ban after the harvest figures are compiled.

RIA Novosti reported that Zubkov, who oversees agriculture, made the announcement after telephone conversations with officials from Egypt, Israel and Turkey. All three are major importers of Russian wheat.

Global wheat prices skyrocketed after Russia announced the ban.

Russia was the world's third largest wheat exporter last year.

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http://www.fsvps.ru/fsvps/press/1570.html?_language=en meattradenewsdaily.co.uk Thu, 19 Aug 2010 12:00:00 +0300
Safety of Poultry Meat Supplied from Russia Confirmed http://www.fsvps.ru/fsvps/press/1568.html?_language=en RUSSIA - Recognising that media reports about the large recall of table eggs in the US due to salmonella could raise concerns by the Russian Federation about the safety of US poultry products, the USA Poultry & Egg Export Council hereby declares that all poultry meat produced in the USA and designated for export to the Russian Federation is in full compliance with Russian requirements on the safety of poultry products.

The recall by the US Food and Drug Administration of 550 million table eggs that were found to be contaminated by Salmonella enteritidis bacteria is unrelated in any way to US chicken meat production. The recalled eggs were produced at two large layer farms in the state of Iowa. These farms are located more than 800 kilometers from the closest broiler facilities approved for export of chicken meat to Russia, which are in the state of Arkansas.

“The poultry meat and egg segments of the US poultry industry are completely separate entities. The products never come in contact with each other and are produced at separate facilities remotely located from one another, which fully excludes any possibility of cross-contamination. In addition, the safety of poultry meat and table eggs produced in the US is controlled by two different federal agencies: the Food Safety and Inspection Service of the US Department of Agriculture ensures the safety of poultry meat and the Food and Drug Administration of the US Department of Health and Human Services ensures the safety of table eggs. Moreover, US table eggs have not been supplied to Russia since the end of 1999,” said Jim Sumner, President of the USA Poultry & Egg Export Council.

“All US poultry facilities that have received permits for exports of poultry meat to Russia are currently using new technologies of poultry carcass disinfection which are in full compliance with Russian requirements on the safety of poultry products, including the presence of such pathogens as salmonella bacteria,” said Mark Lobstein, Director of Technical Services, USAPEEC.

“The safety of US poultry meat and its compliance with Russian requirements is guaranteed at all stages of the production process by the US Department of Agriculture.,” Mr Sumner noted.

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http://www.fsvps.ru/fsvps/press/1568.html?_language=en ThePoultrySite Thu, 19 Aug 2010 12:00:00 +0300