US sees Irish beef crisis as opportunity

THE BSE crisis in Ireland is an opportunity for US beef producers to increase their exports to Russia, according to a report from the US embassy in Moscow to the Department of Agriculture in Washington.

The report, code numbered RS9652V, was drafted by an embassy worker, Ms Yelena Vassilieva. It was approved by the embassy's agricultural attache, Ms Mary Revelt, on October 30th, the day before Russia's ban on imports of beef from Cork, Tipperary and Monaghan came into effect. It states that the ban may result in increased opportunities for US beef on the Russian market.

The ban on beef from the three counties is due to last for three months before being reviewed by Russian and Irish veterinary officials. Should the incidence of BSE in Cork, Tipperary and Monaghan fall by that time, then beef exports from the counties would be reinstated.

Conversely, a rise in the number of BSE cases could result in beef from other counties being banned, according to the head of the Russian Veterinary Service, Mr Vyacheslav Avilov.

Perhaps the biggest threat to Irish beef in Russia comes from Germany. Unlike France and Ireland, no regions of Germany have been prohibited from exporting meat to Russia.

In 1995 Russia imported 375,000 tonnes of beef, with Ukraine the leading source with 155,900 tonnes, and Ireland second with 86,000 tonnes. In the first half of 1996 Russia imported 335,000 tonnes, with Ukraine still topping the list, but Germany had already moved up to share second place with Ireland.

Most Irish beef on the Russian market is not identified as such, and is processed into salami, sausage and other such products at Russian meat factories.

The major meat processing plants, in the Moscow region in particular, depend heavily on Irish beef.

The Ukrainian national herd is rapidly decreasing, and long term exports from there to Russia are unlikely to continue in their current large volume. Imports from non CIS countries, according to the US report, are therefore likely to grow.

The Russian consumer is well informed on the Irish situation, with articles appearing in the major newspapers, radio and television reports.

A recent article in the influential Izvestiya newspaper told its readers Ire and had a very strict programme for dealing with BSE and that levels in the Republic were extremely low compared with the United Kingdom.

But there was a warning, too. There had been reports, the newspaper said, that in some cases "peasants" were continuing to feed their herds bone meal.

An increase in BSE incidence, the newspaper said, would lead to a total ban. This would provoke stormy protests among Irish farmers, whose livelihoods depended on the Russian market.