Brazilian pork import ban to hit importers

Announcing the ban on 20 September, Russian officials said they had halted imports of all Brazilian meat until such time as Brazilian meat is proven to be safe, although the Brazilian forecast of when the ban could be lifted differed considerably from that of the Russians.

Moscow says it is keen to ensure that Russian food is as safe as possible, and the Russian Veterinary Inspectorate's slogan 'We fight against infection'​ is being increasingly widely heard.

Brazil accounts for the lion's share of imported pork sold on the Russian market - 59 per cent in 2003 and more than 60 per cent in the first seven months of this year - but Russian importers of Brazilian pork say that the ban is being used as a means of supporting local pork processors. They argue that the ban should only cover imports from the affected state of Para, and not all of Brazil as is currently the case.

Similar accusations have recently been levied at the Russian food safety authorities over draconian measures to ensure the safety of dairy products imported from EU countries such as Poland.

One possible reason for the blanket ban is the fast-approaching annual pork and beef quota auction. This auction, which is scheduled for 11 October, is when most of the meat orders for the year are made, and a failure to participate by any company would effectively leave with no orders for its meat supplies.

"The sanctions were introduced three weeks before the auction, and it is likely that many medium-sized companies will simply not apply for participation in it because of the ban on the Brazilian meat,"​ suggested one importer. With a large number of importers unable to participate in the auction, domestic pork producers are likely to benefit from increased sales as they are called upon to fill the gap in demand.

Russian officials could, of course, lift the ban before the auction, but only those companies which have already applied to take part in will be able to do so. In any case, time appears to be running out. Sergei Yushin, head of the National Meat Association of Russia, said that Russian vets would "need at least two weeks to determine whether to maintain the current embargo".​

Whether or not these companies are able to compete in the auction, they are likely to be badly hit by the ban on Brazilian imports. Yushin suggested that importers would have to buy meat in other countries, such as Canada, in order to meet demand. This, combined with the ban on Chinese meat imports in place since June, means that supplies of imported meat from low-cost suppliers are under serious pressure, and that many companies would be forced to cut their margins in order to keep their prices at competitive levels.

The heavy-handed approach now being adopted by the Russian Veterinary Inspectorate is attributed to its new head, Sergei Dankvert, a former Deputy Agriculture Minister, who is clearly not afraid to exert his power and influence wherever he feels it is required - even if this increasingly means rewriting the remit of the food safety agency.

For example, immediately after the US limited imports of Russian steel in the spring of 2002, the Russian Veterinary Inspectorate changed the regulations governing the imports of US poultry into Russia, with the result that import certificates took more than six months to be approved. This delay proved so prejudicial to US poultry producers that the Americans decided to drop the limits on Russian steel imports.