Presentation on theme: "Russian Food Embargo AG BM 102. Background August 7: Russia, in response to the economic sanctions imposed by the European Union and the United States,"— Presentation transcript:
Background August 7: Russia, in response to the economic sanctions imposed by the European Union and the United States, imposed an embargo on those countries imposing sanctions on them Includes meat and poultry, fish, dairy products, fruit and vegetables
Russian poultry embargo February 2002 Response to our steel tariffs Affected beef and pork markets as well
Background 8% of poultry production goes to Russia Imports are 60% of Russian poultry consumption In 2001, 1 million Metric tons to Russia $630 million 57% of Leg Quarter (Bush legs) exports
Cost of the Embargo March - $100 mil. to poultry industry April $200 mil. to poultry industry Also affected beef and pork Barrows and gilts 35.3 cents., down from 45.8 previous year Steers 65.6 cents. down from 72.7 previous year
What will this mean to our Agricultural prices? Russia now buys about7% of poultry exports In 2002 our meat market was hit hard This time, they will buy poultry from Brazil and we will serve Brazil’s customers they will leave unserved Russia buys 1% of total ag exports
What does it mean to Russian people 40% of the food comes from imports Food prices will rise Some shortages Already a very poor country Saratov Russian officials said the embargo would drive the revival of domestic agriculture and promote the Kremlin’s goal for the country to become self- sufficient in food production.
Moscow officials say frozen fish prices in the capital's major supermarkets have risen by 6%, milk by 5.3% and an average cheese costs 4.4% more than it did before the 7 August ban took effect.
Summary Big effect on Russian consumers Big effect on some European farmers Little effect on us farm prices