Voluntary Report - public distribution

**Date:** 12/28/2005

**GAIN Report Number:** RS5087

RS5087

**Russian Federation**

**Livestock and Products**

**Russia Extends Brazilian Meat Ban**

**2005**

**Approved by:**

![](media/image1.wmf)Kimberly Svec

American Embassy, Moscow

**Prepared by:**

Erik Hansen and Mikhail Maksimenko

**Report Highlights:**

Russian and Brazilian veterinarian officials met in Moscow on December
21 to discuss the epizootic situation in Brazil after several foot and
mouth (FMD) disease outbreaks. After the meeting, Russian officials
announced a one-year ban on all beef and pork products from Mato Grosso
do Sul and Parana and a six-month ban on six other nearby states. As a
result of the ban, meat prices in Russia are expected to increase
substantially since Brazil is the leading exporter of beef and pork to
Russia.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Moscow \[RS1\]

\[RS\]

# 

# Summary {#summary-1}

The official press service of the Ministry of Agriculture reported that
Russian and Brazilian veterinary officials held a high-level meeting to
discuss the epizootic situation in Brazil after several foot and mouth
(FMD) disease outbreaks were confirmed in southern Brazil. At the
meeting, the Brazilians failed to convince their Russian colleagues that
they could eradicate FMD from their territory and guarantee the
well-being of their animals. According to Russian media reports, after
the meeting Russian officials announced an extension to the ban on all
beef and pork products from Mato Grosso do Sul and Parana and a
six-month ban on six nearby states.

Experts believe that an expanded import ban would wipe out Brazilian
beef and pork exports to Russia in 2006 if it lasts beyond March, which
would have a significant impact on meat prices in Russia. Analysts
expect pork and beef prices in Russia to increase by more than 10
percent in the near-term and up to 15-20 percent in the long-term.
Brazil is the leading exporter of beef and pork to Russia.

# Russia Concerned About Frequent FMD Outbreaks in Brazil

The official press service of Russia's Ministry of Agriculture reported
that the Russian and Brazilian veterinary officials held a high-level
meeting in Moscow on December 21, 2005 to discuss Russian concerns of
recent FMD outbreaks in Brazil. At the meeting, the Brazilians failed to
convince their Russian colleagues to lift the temporary ban placed on
imported beef and pork from the following Brazilian states: Mato Grosso,
Goias, Sao Paulo, Minas Gerais, Parana, Santa Catarina and Rio Grande do
Sul, and Mato Grosso do Sul. Restrictions were introduced on December 13
after outbreaks of FMD were registered in southern Brazil.

**High Level VPSS Officials Want Guarantees**

Head of Russia's Federal Veterinary and Phytosanitary Surveillance
Service (VPSS), Sergey Dankvert, emphasized that this decision was not a
'political action'. He added, \"We do not want to interfere with trade,
all we want is to have justified guarantees that the products imported
to the territory of the Russian Federation are safe.\"

After the meeting, Yevgeniy Nepoklonov, Deputy Head of VPSS, stated,
\"Up to now we have learned just one thing: at the present time,
Brazilian veterinarian services are not able to guarantee the well-being
of their animals regarding this disease and how they plan to eradicate
it from their territory in the shortest period of time possible. For
about a year we shall ban meat products from the states of Mato Grosso
do Sul and Parana, which are not safe in terms of foot-and-mouth
disease, and at a minimum for half a year we shall ban meat products
from the bordering states as well.\" In addition, Nepoklonov said, \"The
Brazilian side should try to restore credibility with respect to their
veterinary service, if this does not happen, the period of restrictions
may get extended.\"

# Impact of Ban on Meat Prices

Brazil is the leading exporter of beef and pork to Russia. During the
first 9 months of 2005, 50 percent of all pork imports and 40 percent of
all beef imports to Russia were from Brazil valued at \$700 million.

Experts believe that an expanded import ban will bring significantly
higher domestic beef and pork prices, becoming noticeable once supplies
of Brazilian meat currently in storage run low after the New Year
holiday season. After the initial ban established on December 13,
Russia's market responded with an immediate 4-percent rise in wholesale
prices for imported pork. Analysts claim that pork and beef prices in
Russia will increase by more than 10 percent in the near-term and
increase by 15-20 percent in the long-term.