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UPDATE 4-Russia rules could hurt US beef exports-senators

Published 01/15/2010, 06:43 PM

* Russia wants US beef plants reinspected by Feb. 1

* To bar beef from those not meeting Russia standards

* Issue to be raised at talks next week in Moscow

* May significantly impact US beef exports-senators

* Trader calls it "big splash in small puddle" (Adds comments from USTR spokeswoman)

By Roberta Rampton

WASHINGTON, Jan 15 (Reuters) - New Russian inspection rules could trim U.S. beef exports to the market as of Feb. 1, two influential U.S. senators said in a letter to President Barack Obama on Friday, urging action on bilateral meat trade issues.

Russia's veterinary service has asked the U.S. Agriculture Department to reinspect U.S. beef plants exporting to Russia by Feb. 1, and bar any not meeting Russian requirements from shipping meat, a spokeswoman for the U.S. Trade Representative said.

"The United States and Russia have mutually agreed-upon audit requirements, in place of Russian requirements, that U.S. beef production facilities must meet to be eligible to export to Russia," Nefeterius McPherson said.

She said U.S. trade officials will discuss the changed rules next week in Moscow during talks about Russian food safety measures that have effectively banned imports of U.S. chicken and pork. [ID:nN15203392]

If the Russian standards are put into place, that would significantly affect U.S. beef exports, said Blanche Lincoln, chairman of the Senate agriculture committee, and Saxby Chambliss, the ranking Republican on the committee.

"We urge you to fully engage all administration resources to address these agricultural trade issues," the senators told Obama.

Russia informed the United States about its concerns on beef on Nov. 20, the USTR said.

"It has to do with issues of plant protocol on testing and how things operate" at several large U.S. beef plants, a meat industry source told Reuters.

The U.S. meat industry is watching the situation to see whether it escalates, another industry official said, noting it was too early to tell whether beef exports would be affected.

Russia has effectively banned imports of U.S. poultry amid concerns about a chlorine wash used by U.S. producers. It also has banned almost all U.S. pork in recent weeks on allegations the meat contained excessive antibiotic residues.

Last year, Russia was the 10th-largest market for U.S. beef and was worth $95 million -- a small share of total U.S. beef exports of $3.6 billion, according to government data.

For 2009, the value of Russian imports as of November was down 60 percent.

The news had little effect on U.S. cattle futures because of the small size of U.S. beef sales to Russia, said Peter Adams, principal at PNM Trading in Chicago.

"It's a big splash in a small puddle," he said. (Additional reporting by Jerry Bieszk and Bob Burgdorfer in Chicago; Editing by Marguerita Choy)

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