Weekly Overview: Focus on the BRICS
GLOBAL - The BRIC countries - a group of markets that comprises Brazil, Russia, India and China - have figured highly in the news in the last week or so. Following its ban on food imports from some countries, Russia has been meeting with potential new suppliers, including Brazil and Argentina. A series of food safety scandals is having an impact on China's food sector, while India has been described as a "bright spot" among the BRICs currently.
20 March 2019
3 minute read
By: Starting with Russia, the trade war between Russia and the EU, US, Canada, Australia and Norway, which flared up because of sanctions imposed over the crisis in Ukraine, was stepped up last week.
The Russian veterinary authority, Rosselkhoznador, seized batches of meat, poultry and dairy products, eggs and honey that were discovered being imported into the country at border posts between Ukraine and Russia.
Furthermore, a top level meeting took place between the Russian authorities and Argentinian officials with the view to replace meat and food products that have been banned by President Putin’s import embargo.
Argentina's Minister of Industry, Deborah Giorgi, said: “We can ensure the supply of a wide variety of Russian products of animal and vegetable origin.
“The volume of poultry meat production in Argentina is 700,000 tons per year, which gives the country the ninth largest production in the world in this product group.
“In addition, Argentina is ready to export poultry feed, vaccines and genetic resources," she said.
Argentina has reportedly expressed interested in obtaining the quota for poultry meat previously provided by the European Union.
The Russian ban on meat and food products from certain countries is starting to bite and could have a dramatic effect on the global food market.
With the US, Canada, the EU, Australia and Norway out of the picture, Russia is also looking to Brazil, Chile, Ecuador and China to supply its needs.
The Russian veterinary and food safety authority has approved several food processing operations in Chile and Brazil for export to the Russian Federation.
Extra Russian demand is seeing ‘soaring’ pork prices in Brazil, which is now inflating beef and chicken markets at a low supply ebb.
India is a "shining star" among those emerging markets, according to an economist with Rabobank in the US, speaking at the Farm Progress Show near Boone, Iowa, earlier this week.
Stephan Nicholson told ThePoultrySite that India is sometimes overlooked by US agricultural product exporters but it is the second most populous country and its people are well educated and growing rapidly in wealth and hence, purchasing power for animal proteins.
Following the withdrawal of meat products supplied by Shanghai Husi Food Co. from global fast-food chains last month, Whole Hog Editor, John Strak, has offered his prediction on how the scandal may affect the markets in China.
