Russia’s embargo on American poultry will not leave a significant impact on the European poultry market, however, the effect could become evident in the long-term, as the global market prices are expected to change, claims the CEO of the Latvian poultry producer Kekava, Andris Vilcmeiers.
From December, 5, Russian Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor) imposed a ban on poultry from the US, due to the violation of the veterinary rules of the Customs Union. Poultry from the US however, has not been supplied to the Russian market since August of this year due to the food embargo, but with these new restrictions American exporters lost the possibility to return to the Russian market in the foreseeable future.
“The effect will become evident in the long-term. American overproduction will have to be sold somewhere. The global prices will be affected depending on which markets the United States will acquire. For example, if poultry is sold in China, which currently suffers a huge poultry deficit, prices will remain the same. If sold in Brazil, which already suffers an overproduction, the Brazilian poultry prices will fall, which will further affect prices in other global markets,” Vilcmeiers offered.
He also said that poultry prices could be affected by the new still-in-development trade agreement between the European Union and the US, which possibly will reveal more market opportunities for Americans in Europe.