Although operating under an incomplete export protocol that is still
being negotiated, NCBA has received word that U.S. beef has been sold to
Russia for the first time since Dec. 23, 2003.
"Historically,
Russia was the largest market for U.S. beef liver exports, but
information regarding this $0.5 million sale is significant and arguably
historic," says NCBA Chief Economist Gregg Doud. "Our understanding is
that it may be the first of its kind involving the sale of U.S. whole
muscle cuts, thought to be from the round."
While a sale
of this size by itself is not likely to be a market mover, the potential
for additional sales will be watched closely. Already one of the world's
largest importers of poultry meat, USDA currently forecasts total
Russian beef imports at slightly over one million metric tons, probably
worth more than $2 billion in 2007, making Russia the second largest
beef importer in the world behind the United States.
Russia's
dominant position as one of the world's largest exporters of energy has
led to explosive economic growth since U.S. beef last had access to
Russia, and a huge increase in Russia's demand for animal protein.
Russia is now
the largest beef export market for Brazil and Paraguay as well as a
major market for Argentina, Uruguay and Australian beef. A U.S. beef
export sale of this size also suggests that the decline in the value of
the U.S. dollar, and strength in the Brazilian Real, is putting some
cuts of U.S. grain-fed beef on a competitive footing with Brazilian
grass-fed beef in the global marketplace.
