August 08, 2014 - Blog
On Aug. 7, Russia banned billions of dollars in food imports from 12 countries and the 28 member states of the European Union in retaliation against the sanctions imposed over Russia’s involvement in the ongoing crisis in Ukraine. Currently, Russia imports a vast majority of its food, and spent more than $10 billion on foods from the banned countries in 2013.
The 1-year ban covers imports of meat, including all forms of beef and pork, poultry, smoked foods, sausages, fish, fruits and vegetables, nuts and dairy products, such as milk and cheese. The Russian agriculture minister’s office stated that the ban could affect roughly 10 percent of the country’s supply of pork, fish and fresh fruit.
According to data from the Institute for Complex Strategic Studies (ICSS), Russia buys 31.5 percent of its meat, 42.6 percent of its dairy products and 32 percent of its vegetables from Europe. The European Commission has called an emergency meeting on Aug. 14 to analyze the impact of the ban on EU food imports.
Figures from the International Trade Centre in Geneva show U.S. total trade with Russia in 2013 was $16.75 billion, with food trade accounting for 7.1 percent. Of that, poultry was the biggest import at $307 million, followed by nuts, $174 million; soybeans, $157 million; fruit, $47.5 million, sunflower seeds, $16.3 million, pork, $16 million, eggs, $12 million, corn, $7 million; and rice, $6 million.
While Russia represents a small part of U.S. exports, it’s no doubt that the U.S. will take some type of economic hit, especially in the poultry, nut and soybean sectors. If the ban is prolonged, it could ultimately lead to a decline in domestic prices if those commodities cannot absorbed by other global markets.
It important to note that this isn’t the first time food exports have been in the line of fire from Russia.
In September 2012, Russia temporarily banned the import of Monsanto’s genetically modified (GM) corn after results of a study published in the Journal of Food and Chemical Toxicology showed rats fed GM corn developed tumors and organ damage, with a high rate of premature death.
In July 2013, China, Japan and Russia banned poultry and poultry products shipped from Arkansas, Wisconsin and New York after health and regulatory authorities confirmed the presence of 7N7 virus was confirmed.
And let's not forget the 1980 embargo of U.S. grain sales to the Soviet Union by the Carter Administration because of the USSR's invasion of Afghanistan. President Ronald Reagan lifted the embargo in April 1981.
On Aug. 7, Russia banned billions of dollars in food imports from 12 countries and the 28 member states of the European Union in retaliation against the sanctions imposed over Russia’s involvement in the ongoing crisis in Ukraine. Currently, Russia imports a vast majority of its food, and spent more than $10 billion on foods from the banned countries in 2013.
The 1-year ban covers imports of meat, including all forms of beef and pork, poultry, smoked foods, sausages, fish, fruits and vegetables, nuts and dairy products, such as milk and cheese. The Russian agriculture minister’s office stated that the ban could affect roughly 10 percent of the country’s supply of pork, fish and fresh fruit.
According to data from the Institute for Complex Strategic Studies (ICSS), Russia buys 31.5 percent of its meat, 42.6 percent of its dairy products and 32 percent of its vegetables from Europe. The European Commission has called an emergency meeting on Aug. 14 to analyze the impact of the ban on EU food imports.
Figures from the International Trade Centre in Geneva show U.S. total trade with Russia in 2013 was $16.75 billion, with food trade accounting for 7.1 percent. Of that, poultry was the biggest import at $307 million, followed by nuts, $174 million; soybeans, $157 million; fruit, $47.5 million, sunflower seeds, $16.3 million, pork, $16 million, eggs, $12 million, corn, $7 million; and rice, $6 million.
While Russia represents a small part of U.S. exports, it’s no doubt that the U.S. will take some type of economic hit, especially in the poultry, nut and soybean sectors. If the ban is prolonged, it could ultimately lead to a decline in domestic prices if those commodities cannot absorbed by other global markets.
It important to note that this isn’t the first time food exports have been in the line of fire from Russia.
In September 2012, Russia temporarily banned the import of Monsanto’s genetically modified (GM) corn after results of a study published in the Journal of Food and Chemical Toxicology showed rats fed GM corn developed tumors and organ damage, with a high rate of premature death.
In July 2013, China, Japan and Russia banned poultry and poultry products shipped from Arkansas, Wisconsin and New York after health and regulatory authorities confirmed the presence of 7N7 virus was confirmed.
And let's not forget the 1980 embargo of U.S. grain sales to the Soviet Union by the Carter Administration because of the USSR's invasion of Afghanistan. President Ronald Reagan lifted the embargo in April 1981.
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