Russia’s Central Bank Fixes Upper End of Ruble Trading Band

A move by Russia’s central bank to set a floor for the value of the ruble should reduce the uncertainty for importers concerning ruble depreciation. The Bank of Russia set the upper end of the ruble trading band against the dollar and the euro. With the current euro-to-dollar rate of $1.3 to 1 euro, the upper end is fixed at 36 rubles to the dollar. Analysts consider the Russian government’s resources sufficient to defend this floor rate, and importers and exporters can negotiate terms in a clearer and more certain environment.

A statement issued by the central bank said that the level has been set considering the risk that Russia's foreign trade situation could worsen even more. The bank, however, believes the risks are moderate and does not intend to move the band's upper end for a few months to come.

The Bank of Russia estimates that if the current prices for oil and other Russian exports are maintained, the ruble rate will keep Russia's balance of payments in balance. The announcement marks the end of the controlled ruble devaluation policy the Central Bank initiated on Nov. 11, 2008.

USMEF Welcomes Mexico’s Revisions to Combo Ban, but Major Issues Remain on Horizon

Mexico’s recent announcement that it will limit its ban on meat products shipped in combo bins to frozen products comes as welcome news for the U.S. meat industry. The revised ban should address the majority of inspection concerns expressed by the government of Mexico without causing major disruptions in trade or forcing the industry to use costly alternative packaging methods.

It is important to note, however, that questions related to sampling and inspection of fresh/chilled products shipped in combo bins still have not been resolved, and these issues could represent a concern for U.S. exporters

“The governments of the United States and Mexico have come a long way on this issue, and we are satisfied that (as of Jan. 30) only frozen products will be banned in combo bins,” said Chad Russell, USMEF regional director for Mexico and the Dominican Republic. “Next week a bilateral delegation from the two countries will visit facilities in Canada and the United States to observe how combo bin shipments of fresh/chilled products are inspected and processed.  It is unclear at this time how the government of Mexico may incorporate findings into its own inspection processes.”

On other issues , Russell said a technical subgroup consisting of Mexican government and industry officials is being formed to examine regulations and sampling procedures, including the criteria that will be applied to microbiological sampling of fresh meat and meat products. Microbiological testing is not currently part of Mexico’s NOM-30 and related health and safety regulations, but is included in a proposed modification of this regulation. SENASICA, the Mexican food safety and inspection agency, is also working with Mexico’s Secretariat of Health to develop new residue monitoring programs for pathogens, melamine and dioxin. 

“Several issues are converging at one time that have the potential to affect the flow of U.S. products into Mexico,” explained Russell. “It’s very important that U.S. exporters remain tuned into these issues and follow their progress carefully. We’re not necessarily anticipating any negative outcomes from these proceedings, but the potential impact on commerce between the two countries is substantial.” 

USMEF will continue to monitor these emerging issues and, to the extent possible, strive to influence the outcomes in favor of Mexican consumers and the U.S. red meat industry.

Seng Interviews to Air this Week on RFD-TV, AgriTalk

Live interviews with USMEF President and CEO Philip Seng will be broadcast this week from the Cattle Industry Convention and NCBA Trade Show in Phoenix.

On Wednesday, Jan. 28, from 8:00 to 10:00 p.m. Eastern time, RFD-TV will air live programming from the exhibit hall of the NCBA Trade Show. Seng will be one of the guests interviewed during the program, with his interview tentatively scheduled for the 9:30 to 10:00 p.m. segment. RFD-TV is carried on DIRECTV channel 345, DISH Network channel 231 and on many local cable systems.

The following day, AgriTalk will feature a live radio interview with Seng at approximately 11:30 a.m. Eastern time. AgriTalk is a live, nationwide radio program that focuses on the top agricultural issues of the day. It is carried daily on more than 70 farm radio stations in 16 states, and can also be heard live at www.agritalk.com.

In both interviews, Seng plans to discuss USMEF’s participation in the convention and trade show, the latest developments regarding beef exports, and the impact of the current economic crisis on global trade.

A move by Russia’s central bank to set a floor for the value of the ruble should reduce the uncertainty for importers concerning ruble depreciation. The Bank of Russia set the upper end of the ruble trading band against the dollar and the euro. With the current euro-to-dollar rate of $1.3 to 1 euro, the upper end is fixed at 36 rubles to the dollar. Analysts consider the Russian government’s resources sufficient to defend this floor rate, and importers and exporters can negotiate terms in a clearer and more certain environment.

A statement issued by the central bank said that the level has been set considering the risk that Russia's foreign trade situation could worsen even more. The bank, however, believes the risks are moderate and does not intend to move the band's upper end for a few months to come.

The Bank of Russia estimates that if the current prices for oil and other Russian exports are maintained, the ruble rate will keep Russia's balance of payments in balance. The announcement marks the end of the controlled ruble devaluation policy the Central Bank initiated on Nov. 11, 2008.

USMEF Welcomes Mexico’s Revisions to Combo Ban, but Major Issues Remain on Horizon

Mexico’s recent announcement that it will limit its ban on meat products shipped in combo bins to frozen products comes as welcome news for the U.S. meat industry. The revised ban should address the majority of inspection concerns expressed by the government of Mexico without causing major disruptions in trade or forcing the industry to use costly alternative packaging methods.

It is important to note, however, that questions related to sampling and inspection of fresh/chilled products shipped in combo bins still have not been resolved, and these issues could represent a concern for U.S. exporters

“The governments of the United States and Mexico have come a long way on this issue, and we are satisfied that (as of Jan. 30) only frozen products will be banned in combo bins,” said Chad Russell, USMEF regional director for Mexico and the Dominican Republic. “Next week a bilateral delegation from the two countries will visit facilities in Canada and the United States to observe how combo bin shipments of fresh/chilled products are inspected and processed.  It is unclear at this time how the government of Mexico may incorporate findings into its own inspection processes.”

On other issues , Russell said a technical subgroup consisting of Mexican government and industry officials is being formed to examine regulations and sampling procedures, including the criteria that will be applied to microbiological sampling of fresh meat and meat products. Microbiological testing is not currently part of Mexico’s NOM-30 and related health and safety regulations, but is included in a proposed modification of this regulation. SENASICA, the Mexican food safety and inspection agency, is also working with Mexico’s Secretariat of Health to develop new residue monitoring programs for pathogens, melamine and dioxin. 

“Several issues are converging at one time that have the potential to affect the flow of U.S. products into Mexico,” explained Russell. “It’s very important that U.S. exporters remain tuned into these issues and follow their progress carefully. We’re not necessarily anticipating any negative outcomes from these proceedings, but the potential impact on commerce between the two countries is substantial.” 

USMEF will continue to monitor these emerging issues and, to the extent possible, strive to influence the outcomes in favor of Mexican consumers and the U.S. red meat industry.

Seng Interviews to Air this Week on RFD-TV, AgriTalk

Live interviews with USMEF President and CEO Philip Seng will be broadcast this week from the Cattle Industry Convention and NCBA Trade Show in Phoenix.

On Wednesday, Jan. 28, from 8:00 to 10:00 p.m. Eastern time, RFD-TV will air live programming from the exhibit hall of the NCBA Trade Show. Seng will be one of the guests interviewed during the program, with his interview tentatively scheduled for the 9:30 to 10:00 p.m. segment. RFD-TV is carried on DIRECTV channel 345, DISH Network channel 231 and on many local cable systems.

The following day, AgriTalk will feature a live radio interview with Seng at approximately 11:30 a.m. Eastern time. AgriTalk is a live, nationwide radio program that focuses on the top agricultural issues of the day. It is carried daily on more than 70 farm radio stations in 16 states, and can also be heard live at www.agritalk.com.

In both interviews, Seng plans to discuss USMEF’s participation in the convention and trade show, the latest developments regarding beef exports, and the impact of the current economic crisis on global trade.