Russia, the world's biggest poultry importer, may ban US chicken parts for the second time this year, exacerbating a glut on the US market that has slashed prices and hurt profit at Tyson Foods and other meat companies.
Russia, which imports about $660 million of US poultry each year, said that US suppliers probably will not meet an August 1st deadline for obtaining new veterinary certificates. The two nations agreed to the permits in April after talks that ended the first ban.
“The US side is delaying the process of agreeing on new certificates,” the Russian Agricultural Ministry said in a statement e-mailed to news services. “As a result, imports of U.S. poultry will be almost impossible as of August 1st”
Tyson shares slumped thirteen percent in the past three days on concern that Russia will stop US poultry imports again, reducing earnings at the world's biggest chicken producer. The initial ban threatened to overshadow terrorism and nuclear arms at the May summit between the US President George W. Bush and Russian President Vladimir Putin.