01/24/08 Beef to Russia

The United States has just shipped beef to a nation for the first time in four years. I'm Jeff Keane; I'll be back right after this to tell you what nation it is. United States beef has just been sold to Russia after a four-year ban starting in 2003. This sale could have real possibilities since Russia is the second largest beef importer behind the United States. Before 2003, Russia was the biggest importer of U.S. beef liver. This new sale of beef to Russia is not only the first in many years, but it may also be the first sale involving whole muscle cuts of our beef. While a sale of five hundred thousand dollars is not very large compared to Russia's predicted two billion dollar beef imports for 2007, it could be a step in the right direction. Several factors could help this market for U.S. beef expand. First of all, Russia is one of the world's largest exporters of energy, which has led to a large economic growth and a major increase in demand for animal protein in that country. Secondly, Brazil is one of Russia's largest sources of beef imports, but Brazil's currency has strengthened while the U.S. dollar value has declined. This puts the United Sates in a more favorable trading position. One other positive I see is that most of Russia's other importers ship grass-fed beef including Paraguay, Argentina, Australia and Uruguay. When U.S. grain-fed beef gets a chance to compete with that beef, I believe the demand for our beef will only increase. I'm Jeff Keane. Western Livestock Reporter 12/12/07