EU Russia aid on hold

By FW staff

THE EUs food aid programme to Russia has been suspended following concern among
Russian authorities over quality of the produce and veterinary and
sanitary controls.

The deal had included 1 million tonnes of wheat, 150,000t of beef and 100,000t of pigmeat. No tenders, including last weeks round of 30,000t of pigmeat, will now be accepted.

Although the collapse of the deal is disappointing its effect on the pigmeat market is
difficult to call, says MLC economist Tony Fowler.

The tonnage involved was a lot less than we exported
to Russia in 1997, and it probably wouldnt have had that much impact on the market.

Gerald Mason of the HGCA believes the
cereals market had already anticipated problems.

“I think people had become quite sceptical,
given the time it took to come to an agreement and the fact that Russia was still exporting wheat at the
time they were asking for food aid.”