LITTLE ROCK — Russia will cut its poultry-import quota to 350,000 metric tons next year, 50 percent less than this year and about 40 percent less than originally planned.
The tentative decision was made Tuesday by Deputy Prime Minister Victor Zubkov, a government official said, declining to be identified by name because of policy. The government in December 2009 said quotas would drop to 600,000 tons in 2011 and 550,000 tons in 2012.
The new level is in line with the industry’s expectations and will mostly go to the U.S., said Dmitry Rylko, director of the Institute for Agriculture Market Studies in Moscow. Historically, U.S. producers supply nearly 75 percent of Russian poultry imports.
Russia introduced import quotas in 2003 to help domestic producers. Quotas were cut by 18 percent this year in a bid to increase national production.
Russia suffered its worse drought in at least half a century this year, killing crops and driving feed prices higher. Cattle herds have been cut by about 5 percent in seven regions, including Moscow, Zubkov was cited as saying by Interfax. Thirty-one regions increased meat output.
In June, Russia lifted a five month ban on all U.S. poultry after it reduced the allowable amount of chlorine U.S. producers could use to disinfect the meat.
Toby Moore, a spokesman with the USA Poultry & Egg Export Council, said Tuesday that news about the import quota wasn’t a surprise and held out hope that the U.S. industry might be able to negotiate a higher metric ton figure.
Russia “still hasn’t announced the [poultry] quota for next year,” said Moore, adding that the industry had an ally in U.S. Ambassador to Russia John Beyrle.
Beyrle had been quoted by RBC Newswire as stating that the United States poultry industry stood ready to provide 450,000 metric tons in 2011, according a news release provided by the export council.
A firm deadline for the 2011 poultry quota has not been set, Moore said. Russia spent about $752 million on U.S. chicken in 2009, U.S. Department of Agriculture data show.
Tyson Foods Inc. of Springdale deferred comment about the quota restrictions to the USA Poultry & Egg Export Council, which represents 95 percent of all U.S.-based producers engaged in international trade.
Tyson’s export sales represented 11 percent, or $3.2 billion of $28.43 billion, of its 2010 total sales. Previously, the company reported international chicken sales to Russia fell from 26 percent in 2005 to 10 percent in 2009.
Russia’s pork-import quota will be unchanged at 472,000 tons next year, dropping to 425,000 tons in 2012, Zubkov was reported as saying by Interfax. The quota forfrozen-beef imports will also remain unchanged at 530,000 tons next year and the one for chilled beef will remain at 30,000 tons, Interfax said.
U.S. poultry producers ship mainly leg quarters to Russia.
Moore said the practice dated from the 1990s with the first Bush administration when the parts were included as part of food-aid packages.
Leg quarters, which fetch a higher price per pound in markets such as Russia, have been fondly referred to n as “Bush legs,” Moore said. But now “it can be a term of derision.”
Shares of Tyson Foods dropped 41 cents, or 2.47 percent, to close at $16.19 in trading on the New York Stock Exchange on Tuesday. Colorado-based poultry giant Pilgrim’s Pride Corp. lost 28 cents, or 4.17 percent, to close at $6.44.
Information for this article was contributed by Marina Sysoyeva of Bloomberg News and Laurie Whalen of the Arkansas Democrat-Gazette.
Business, Pages 27 on 11/24/2010