RUSSIA.
THE WORLDS LARGEST MEAT BUYER.
There is no doubt that Russia is the worlds largest meat market today, the Russians have learnt that they can pick and chose the suppliers they want.
This is a far cry from the old days of the Soviet Union, when the west could dump intervention beef and butter on to the Russian market or the Americans wheat, in order to stabilize their domestic markets.
Russia has banned 14 European plants and 19 US plants,along with 4 in Australia, 6 in Brazil and 2 in Argentina,in the last few weeks, from exporting to Russia.
The alleged reasons are chemical and mineral deposits in the meat, the real reasons according to meat trade insiders, are flexing muscle and showing that Russia can lay down their own rules.
This is not new, as the USDA invented the rouse they were doing the same thing with Ireland and Australia 40 years ago.
When trade was over supplied, it was usually rail dust or insecticide residue that was found in the meat by the USDA, There would be a temporary ban, then the trade would find a level and all would begin again. As the US buyers were firmly in control no one even dared question them.
This is the epitome of what goes around, comes around. The is very little new, in the meat industry.
The stock exchange in Moscow has been in free-fall sine August losing 60% of its value.
Making matters worse, over US$7 billion in foreign investment has left Russia in the last2 months.
The fact that Russia is oil rich and debt free, they will find a new level and the fiasco in Georgia, could backfire worse on the United States than Russia.
The Europeans, who are dependent on Russian gas for 40% of their needs, will use diplomatic means, to settle any disputes with Moscow. There is no question of sanctions.
This could be a wonderful opportunity for South America and Australia to fill the void that the USA is going to leave in the poultry and pork exports to Russia.
The problems may be short term, when the White House changes hands on January 20, or they good last for eight years.
People have short memories, in 1980 Ronald Reagan suggested a boycott of the Moscow Olympics saying "We cannot visit a country that has invaded a sovereign state" referring to Afghanistan.
Today you have unlawful invasions in Iraq and Afghanistan, by the United States again what goes around comes around.
Russia will not be pushed around today it’s a question of who need who, Europe need the gas and oil.
