News 1144 views update:Mar 9, 2016

Russia restricts poultry imports from Ukraine

Rosselkhoznadzor, the Russian Federal Service for Veterinary and Phytosanitary Surveillance has temporarily limited imports from the Ukrainian company, Dnipro poultry farm and introduced enhanced laboratory control of Agroprodukt products.

According to a report by Rosselkhoznadzor, coliform bacteria were found in chilled beef coming from Agroprodukt. In addition, salmonella and listeria were found in poultry received from Dnipro poultry farm. According to experts this could be the first step of the new trade war between two countries as Russia tries to force Ukraine to enter the Custom Union (Russia, Kazakhstan and Belarus).

In 2013 the country plans to export 20,000-30,000 tonnes of poultry to EU and 100,000 tonnes of poultry or 10% of the total volume of internal production to the Custom Union. Experts say that one of these figures could be sharply increased, as Ukraine in the first half of 2013 year will force to choose which Union it would prefer to enter.

"There are only two possibilities: either it will be the signing of the Association Agreement with the EU, or - the first real steps, including legal obligations towards accession to the Customs Union", said Valeriy Chaly, CEO of Razumkov analytical Center of Ukraine. In the first case the country could double poultry exports to EU, while in the second option Ukraine will be able to supply an additional 50,000-60,000 tonnes to the countries of the Custom Union.

However, experts note that if Ukraine will once more struggle against entering into the Custom Union, Russia could completely close its market for Ukraine poultry. The possible “trade wars” between two countries could seriously hamper the development of poultry industry in Ukraine, resulting in the significant fall of prices and oversupply of production in the domestic market.

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