A seen on Agrimoney
18:19 UK, 2nd June 2011, by Agrimoney.com
Brazilian protein giants JBS and Marfrig said they would still export to Russia despite a ban by Moscow on imports from more than 80 meat plants in the South American country, including some run by rival Brasil Foods too.

Both JBS, the world's top-ranking meat group, and domestic rival Marfrig said they would maintain trade lines to Russia by using production from sites not covered by the curbs, including some outside Brazil.

Marfrig said that it had based its strategy "on geographical and protein diversification... allowing the mitigation of commercial and sanitary barriers" should bans be imposed on particular trade routes.

JBS said that, while output from three of its sites was "effectively restricted" by the ban, covering the states of Mato Gross, Parana and Rio Grande do Sul, it had eight other Brazilian facilities "approved and operating", besides plants in other countries.

Both groups have been noted for their international expansion, including JBS's rescue of US chicken group Pilgrim's Pride from bankruptcy 18 months ago.

Test findings

The statements followed the announcement by Rosselkhoznadzor, the Russian food safety watchdog, of a ban covering beef, chicken and pork enterprises, and imposed following inspections which had shown shortcomings in monitoring for toxins such as mercury and dioxins.

More than 260 consignments of meat had failed Russian requirements on measures such as listeria and salmonella, or contamination with traces of listed antibiotics.

"Essentially, the ban is a vote of no-confidence in the veterinary services of these states, which were unable to introduce a system for fulfilling [Russian] requirements," Rosselkhoznadzor spokesman Alexei Alexeyenko told the Interfax news agency.

Russia, which is attempting to build up its domestic protein industry, has proven ready to ban imports on health grounds, including a ban on US chicken last year over concerns about chemicals used to wash carcasses.

Important trade partner 

Brazil, the world's top beef and chicken shipper, is a major shipper of meat to Russia, the world's top beef buyer net of exports.

Russia relied on Brazil for 19% of its poultry imports, 35% of its pork purchases and 45% of beef buy-ins last year, according to Interfax.

JBS sold 10.4% of its $8.5bn in exports last year to Russia, accounts show. For Marfrig, the proportion was 7.5%.

JBS shares stood 1.9% higher at R$5.47 in afternoon trade in Sao Paolo, with those in Marfrig up 0.3% at R$13.94 and in Brasil Foods down 2.8% at R$28.30.

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