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LETTERFROMTHEEDITOR The closing of the Russian frontiers to pork imports from the European Union on the 27th of January can cause serious damage to the European pig sector. The Russian authorities opted for the fast route. With the confirmation of the first two cases of African Swine Fever (ASF) in wild boar in Lithuania, Russia immediately closed its borders to all pork from the European Union. A completely exaggerated decision, as the ban affects not only the countries where cases of ASF have been detected, namely Lithuania and Poland, but also directly the other EU member states that are free from ASF, most of which are also thousands of kilometres from the focus of the disease. Moreover, Russia is much closer to these areas than the majority of the European partners.
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ROTECNA WORLD 18 MARCH 2014
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EDITION: Rotecna, s.a. POL. IND. NAU-3, 25310 AGRAMUNT (LLEIDA) SPAIN DIRECTOR: GENER ROMEU EDITION/PRODUCTION/DESIGN: Montse GUERRERO EDITORS: TAMARA LOMBARDO TRADUCTION: CHRIS BOSWELL Print: Imprenta barnola ISSN: L-41-2007 Rotecna's World's editors accept no liability for contributor's opinion.
The most worrying aspect of this decision is that the effects of the closing of the Russian frontiers can be serious for Europe in the mid term. On one hand, easily predictable negative effects can be caused to export figures, as Russia is Europe’s leading client, with almost 25% of the Community’s exports of pig meat. On the other hand, there is also the fear that the biggest winner in this crisis will be the North American market, taking advantage of the gap left by European exports. However, the American market is not passing through its best moment, with an uncontrolled epidemic of porcine epidemic diarrhoea (PED) in some twenty states. And finally, one of the most immediate effects, which is already being felt, is the fall in the prices of pork on the majority of European markets. However, this decision by the Russian authorities could end up backfiring. Some analysts argue that the Russian meat industry will soon find itself without the raw materials it needs to continue production if the close-down continues. Moreover, we should not forget that new cases of ASF on a pig farm in Russia were made public in early February. Perhaps now, with different circumstances, the Russian authorities will be more willing to talk and to reach agreements to restart pork imports from Europe, albeit with restrictions. Obviously, these would have to be under the strictest possible control to avoid the spread of a disease that could do a great deal of damage to the pig sector. On the other hand, prior to all this turmoil on the market of European pork exports, the forecasts in the first quarterly report for 2014 from Rabobank were good for Europe. Lower feed costs and a positive trend in market prices suggested good profit margins for farmers in the first six months of the year. These forecasts, unfortunately, could be turned on their head if the European Commission is unable to persuade the Russian authorities to sit at the negotiating table to find an agreed solution to bring the European sector back from the brink of the precipice it is now facing. Gener Romeu