22:40 UK, 26th July 2010, by Agrimoney.com
Russian market 'reopens' for US chicken groups

American chicken groups are, after being included on a list of approved supplies, preparing to resume exports to Russia, their biggest foreign market, follow a six-month ban on food safety ground.

US food safety officials have submitted a list of chicken groups complying with a Russian veto on chlorinated rinses for cleaning meat.

Companies on the list are supposed to be eligible to begin shipping to Russia immediately, under an agreement between Moscow and Washington last week.

Pilgrim's Pride, America's second-ranked chicken producer, which is controlled by Brazil's JBS Group, said three of its plants had been included on the list, and had begun packaging meat for export to Russia.

"Pilgrim's… expects to resume shipments shortly," the company said.

Other chicken processors who have claimed readiness to ship to Russia include Sanderson Farms and Tyson.

'Significant benefit'

Russia's ban in January on chlorinated rinses was criticised by many observers as being inspired more by a desire to protect the country's domestic industry, which Moscow is attempting to build to self sufficiency, than by food safety concerns.

However, the Kremlin and Washington in June thrashed out a resolution, in a deal seen as clearing the way for negotiations on Russia's entry to the World Trade Organisation.

New sanitary rules allow alternatives to chlorine solutions as cleaning agents, including peroxyacetic acid, which Pilgrim's Pride is now using on exported chicken.

"We look forward to resuming export shipments to Russia as soon as possible," said Don Jackson, the company's chief executive.

"Russia is an important export market for US chicken, and the re-opening of the borders will be a significant benefit to our company and industry."

Share reaction

Russia was America's biggest chicken export market last year, and was indeed the world's top importer, buying in more than 900,000 tonnes of broiler meat.

Pilgrim's Pride shares closed 1.7% higher at $7.11 in New York, with Tyson shares adding 0.7% to $18.06. Stock in Sanderson Farms, which was downgraded to "underweight" from "equalweight" by Morgan Stanley, closed down 4.1% at $48.67.

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