Wednesday, November 22, 2017

Meat industry sees limited impact of Russian suspension

São Paulo – the temporary suspension of imports of bovine and porcine meat from Brazil by Russia tends to be reversed soon and should have limited impacts to the domestic industry and the image of the Brazilian product abroad, said on Tuesday an Association of exporters and a market analyst.
Food safety agency of Russia, important national product importer, reported on Monday that the country will restrict temporarily purchases Brazilian protein, from December 1, claiming the presence of Ractopamine in some shipments – additive is banned in Eurasian nation.
The Brazilian Association of Animal protein (ABPA), which represents poultry and pig farming of Brazil, said he had received with concern the Russian decision, but bet on the Brazilian Government to "full and fast clarification, resuming soon shipments".
"The agricultural industries associated with respect to health legislation of ABPA Russia ... The industry is sure about the features of your product and ensures that the production of pork shipped does not use Ractopamine, "stated the ABPA in note.
The Russia responded for about 40% Brazilian sales of pork in the year to September, according to data from the ABPA, while the Russians represented around 11% of exports of beef from the country until October, according to another Association the Abiec.
The Brazil is the largest exporter of beef in the world and one of the main in the pork.
The producer and marketer of meat Minerva confirmed on Tuesday that sales of bovine protein from Brazil to Russia will be temporarily suspended, and said the company exports to Russia by company units located in other countries.
Shares in Minerva operated in high light in the early afternoon, after spending the morning in downtown, while the rose more than 2% marfrig‟s, the BRF had high of over 1%, and the advanced 1,8% JBS.
"Market Effect"
In the same vein of the Association of exporters, the market analyst Aedson Pereira, of reports on Economics FNP, indicated that the Russian announcement must have limited effect on the Brazilian shipments, once the Russian shopping this time of year are seasonally lower given the freezing of some ports because of the intense cold.
"The coincident with this temporary blockage is that Brazil exports little (this time) because cold freezes the port structure," he said.
"It is likely that this is not extended, I believe that the Ministry of agriculture and Government officials must act swiftly to diagnose the scenario and make a deal so that it doesn't extend," he said, recalling that Russia is still dependent on meat Brazil.
He also commented that the temporary ban follows an increase in the rate of import of brazilian meat for that country in an attempt to protect the local industry.
"Behind the scenes, to see if an action to relieve jail producer. The brazilian meat was coming to the Russian market very competitive. We were watching our flesh gaining more market. So is there a marketing effect to protect the national industry (Russian) ", assessed the analyst.
Image
For Parker, the case "is not harmful" to the protein image brazilian abroad, once the Ractopamine, used as an ingredient for animal feed, is permitted in other countries.
Sought after by Reuters, the Brazilian Association of Meat exporters (Abiec), which represents the beef industry, said it will for now.
The Brazilian Association of Refrigerators (Abrafrigo) and the Ministry of Agriculture did not respond immediately to requests for comment.
Exame – 21/11/2017
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