Monterey County and Farm Worker Advocacy Group Negotiate Accord

Center for Community Advocacy (CCA) and Monterey County Ag Commissioner’s Office Join Hands

 

A farmworker advocacy group and the agency that regulates pesticide use in Monterey County TODAY  announced the establishment of a farmworker advisory committee to advise the agency and to connect field workers to resources that the agency can use to help them.

“The advisory committee gives us direct access to farmworker leaders; to their concerns and to their suggestions,” said Eric Lauritzen, the Agricultural Commissioner of the County of Monterey.

“This gives us the opportunity to engage in positive, productive conversations that will help us fulfill our obligations to the farmworker community and to the agricultural industry in general.”

Farmworker leaders trained by the Center for Community Advocacy (CCA) will compose the advisory committee.

“CCA strives to develop leadership capacity among farmworkers at the neighborhood level,” explained Juan Uranga, CCA’s executive director and lead attorney. “We use CCA’s housing, health and programs to spot, recruit and engage neighborhood leaders throughout the Salinas and Pajaro Valleys. These leaders first improve conditions in their housing units and neighborhoods. We then create venues where these neighborhood leaders can use their collective power to strengthen their families and create positive change in their communities.”

Six of these CCA-trained neighborhood leaders will comprise the advisory committee.

“We are excited about creating this opportunity,” said one of the CCA neighborhood leaders. “We are pioneers and we hope we’ll be able to work together to help our brothers and sisters who work in the fields. We had a ‘meet and greet’ session with the Commissioner and his staff and we were impressed by their willingness to work with us.”

The Committee will advise the Commissioner’s Office on policies and practices as they impact field workers in Monterey County. The advisory committee and the Agricultural Commissioner’s Office will strive to improve protocols that protect farmworkers from pesticide exposure and other protocols within the Commissioner’s jurisdiction that protect the health and safety of farmworkers. The partnership will also help disseminate information about resources and programs that the Commissioner’s Office can make available to the farmworker community.

The advisory committee comes after negotiations that led to a Statement of Purpose between CCA and the Agricultural Commissioner’s Office. The Statement describes the following functions for the committee:

1. To meet at regular intervals with the Commissioner and his/her staff to exchange information and ideas that will improve the safety of farmworkers.

2. To help disseminate safety information from the Commissioner’s Office to the farmworker community, as the need arises

3. To host annual community dialogues where farmworkers and the Commissioner’s Office meet to discuss the Commissioner’s jurisdiction over agricultural lands in Monterey County.

4. To promote a more sustainable agricultural economy in Monterey County by protecting its most critical resource: farmworkers.

Discussions about forming the committee began several years ago. Working through a rocky start, both the Commissioner’s Office and CCA saw the incredible potential in developing a working relationship.

The two agencies had never worked together. Each had questions about the other’s willingness to work cooperatively. The two agencies developed their relationship by working together on several projects including the AgKnowledge Program hosted by the Grower-Shipper Foundation and a series of small forums between the Commissioner’s Office and CCA-trained leaders. Now, both the Agricultural Commissioner’s office and CCA look forward to this joint effort.

2016-08-29T21:03:53-07:00August 22nd, 2014|

Table olive growers report a ‘real bad’ crop

By Ching Lee; Ag Alert

Freezing temperatures last winter coupled with impacts from the drought have left many California table olive growers in the San Joaquin Valley with not much of a crop this year.

Although the U.S. Department of Agriculture reported a production forecast of 50,000 tons—down from last year’s crop of 91,000 tons—Adin Hester, president of the Olive Growers Council of California, said he thinks the estimate is “on the high side” based on what growers are reporting in Tulare County, where there’s about 12,000 acres, or 60 percent of the state’s table olives.

“It’s real bad down here,” said Rod Burkett, a grower in Tulare County and chairman of the council. “We don’t have any fruit down here to speak of, between the frost, the extensive heat during bloom and the drought.”

Olive trees are alternate-bearing, and this would have been the “off” year, yielding a lighter crop, Hester noted. But with the added weather issues and the drought, growers had a particularly challenging year, he said.

Hester noted that at a growers meeting held by processer Bell-Carter Foods last week in Visalia, not one grower from the San Joaquin Valley predicted yields of 4 tons per acre. Very few said they had 2 to 3 tons per acre, while half of them said they’re not going to pick at all.

Meanwhile, the state’s oil olive crop appears to have fared better.

Patricia Darragh, executive director of the California Olive Oil Council, said estimates for the oil sector are not available until mid-September, but she expects the state will produce about 3.5 million gallons, similar to last year. She said the crop was going to be lighter this year anyway because of the alternate-bearing factor, but noted that some new trees have also come into production. Current acreage is about 35,000.

“Some of the growers have reported a little bit of an increase in production, but some have reported a decrease in production. It does vary throughout the state,” she said, noting that individual growers in certain areas may have suffered more freeze damage than others.

Unlike the state’s table olive production, which is concentrated in Tulare, Glenn and Tehama counties, oil olive production is “pretty far flung in the state,” Darragh said, “so that’s positive for us.”

Jack Bozzano, an olive oil producer in Stockton, said his crop is probably down by half this year, but he attributes that to the trees’ “off” year and said he did not experience much freeze damage.

Table-olive grower Burkett said the December freeze killed much of the new fruit wood that sets this year’s crop, leaving him with a total of 1 to 2 tons spread throughout his 30 acres. That’s compared to 4-and-a-half tons per acre last year.

“There’s no way that I can harvest,” he said.

Art Hutcheson, who also grows table olives in Tulare County, said in addition to frost damage, high temperatures during bloom hurt production. He described his crop as “light” and said he is debating whether it will be cost effective to harvest, even though his fruit will make good size.

“What we do pick is going to bring good money,” he said. “It’s just not going to be a whole lot of it.”

Growers in Northern California also experienced freeze damage, said Mike Silveria, a grower in Orland and chairman of the California Olive Committee. But their production was much better on the Manzanillo variety, which he described as an average crop, whereas the Sevillano variety appears to be a light crop.

The majority of the north state’s crop is in Glenn and Tehama counties, with about 6,000 acres of Manzanillos and 2,000 acres of Sevillanos, while Tulare County grows predominantly Manzanillos, Hester said.

Silveria said the olive committee’s statewide estimate is 32,500 tons, but he thinks yield will be higher—about 42,000 tons, with the north district’s production coming in at around 25,000 to 27,000 tons and the south district at about 15,000 tons.

Ross Turner, who grows both table and oil olives in Corning, said even though many farmers fallowed ground this year due to drought, there’s still concern about whether workers in the San Joaquin Valley would leave the area to travel north to pick olives, as they may not be able to find housing or may have family obligations that prevent them from leaving.

“Labor is an unknown quantity and we’re all scared to death about the availability of labor,” he said. “So many crops are coming on early this year and there’s going to be a competitive market.”

Turner said while he doesn’t have much volume on his trees, he thinks he has a “salvageable” crop that he hopes to pick. But the drought also increased his production costs this year because he had to pump water, he noted. Another added expense was trying to control the olive fruit fly, infestations of which have escalated, he said.

Silveria said his water district will be shutting off irrigation water around late September, but harvest in the north will probably run from early September into October, so growers will have to pick early before their water is shut off, unless they have access to groundwater.

Hester said a lack of water would shrivel the fruit, and processors would reject it. Water shortages could also impact next year’s crop, as water is needed to grow new fruit wood.

Silveria said olive trees are drought-tolerant and can survive with limited water, but growers still need water to make a good crop.

 

2016-05-31T19:33:30-07:00August 21st, 2014|

Farmers Demand Special Master Preserve Uncounted Ballots

Farmworkers at Gerawan Farms have requested the United States District Court (USDC) assign a special master to take possession of their uncounted decertification election ballots.

The uncounted ballots have been in the possession of the Agricultural Labor Relations Board (ALRB), which has been accused by both farmworkers and Fresno Superior Court Judge Jeffrey Y. Hamilton of being “in cahoots” with the United Farm Workers (UFW) union to suppress the farmworkers’ votes.

“We don’t trust the ALRB,” said Gerawan farmworker Silvia Lopez, who filed the motion yesterday in federal court. “They have been working against us from day one and we don’t believe they are fair or have our best interests in mind. We don’t believe that the ballots are safe with them. A special master will guarantee that the ballots remain safe.”

Ms. Lopez has also requested in the motion that if the USDC appoints a special master, the neutral third party should count the ballots. “There are strong judicial economy reasons to count the ballots, as well as elementary notions of fairness and justice that would support this decision,” said Paul Bauer, attorney for Ms. Lopez.

The ALRB has engaged in a number of activities that proves it is neither impartial nor protecting the rights of the farmworkers, including:

  • ALRB mediators refused to allow farmworkers to attend public Mandatory Mediation and Conciliation (MMC) hearings and contract negotiations.
  • Of the nearly 2,500 signatures originally submitted for the decertification petition, the regional director claimed only 100 were invalid, meaning there were still enough valid signatures to require an election.
  • Despite having 2,500 signatures—enough to trigger the decertification election—the regional director claimed there was not a sufficient showing of interest.
  • Farmworkers then submitted 3,000 signatures in a fraction of the time taken to collect the first set. Three days later, the regional director used another excuse to deny the farmworkers’ vote. This time he incorrectly stated that the union contract had been approved and the farmworkers were prohibited from holding a decertification election. The ALRB members in Sacramento overturned this action.
  • For a third time, the regional director tried to stop the vote by engaging in a sham investigation. The ALRB office in Sacramento again overturned his ruling and instructed him that no other blocks to the decertification election were permitted.
  • A legal decertification election was held on November 5, 2013, but the governor’s ALRB has refused to count the ballots. The ballots are currently in possession of the same regional director who attempted to stop the election from happening three times.
  • Despite a legal challenge to the MMC proceedings and the uncounted decertification ballots, the ALRB General Counsel attempted to impose the new UFW contract on the farmworkers by filing a Temporary Restraining Order (TRO) in state court. The judge refused to grant the TRO.

Even Superior Court Judge Jeffrey Y. Hamilton, who presided over the TRO hearing, told the ALRB General Counsel, “In other words, it’s a little bit disingenuous to say you’re protecting these workers’ rights; yet you’re blocking their election at every turn.”

“We hope the federal courts allow a special master take possession of our ballots,” Lopez continued. “It’s clear to everyone, even the court, that the ALRB doesn’t work for us. Why should someone working for the people we’re trying to fire get to keep control over our ballots? It’s not fair and must be stopped.”

To learn more about the farmworkers fight and to view this press release, please visit www.farmworkerrights.com.

2016-05-31T19:33:30-07:00August 21st, 2014|

Water Crisis Reducing Valley Fruit Production

The impact of the worsening drought can be seen in the expected drop in crop production.

Valley fruit production is down on many farms, but the lack of water isn’t the only factor causing the lower expectations.

The grape crop is ready for harvest in many Valley vineyards but there’s not nearly as much of the sweet fruit this year. The U.S. Department of Agriculture expects grape production in California to dip 9 percent.

“We came off two big years in both wine grapes and Thompson seedless, so those vines are taking a little bit of a rest,” said Nat Dibuduo with Allied Grape Growers. “The other factor is obviously the drought. We’ve got growers that lost wells or they’re minimizing their irrigations to stretch out the water they do have.”

Table olives fared even worse with the dry conditions. Production is expected to dip 45 percent statewide but as much as 60 percent in Tulare County. 

“When olive trees go into dormancy they need some good deep soil moisture and they didn’t get it,” said Adin Hester with the Olive Growers Council. “The lack of moisture is something that certainly exacerbated, number one. Number two, we’ve got growers that are just flat out of water.”

Peach production is down 4 percent. We’re seeing peach, olive and grape growers rip out orchards and vineyards to put in more profitable crops like almonds and pistachios.

“I think there’s going to be not only Thompson seedless grapes pulled out after this harvest but also wine grapes throughout the San Joaquin Valley because they’re not making money, and they see their neighbors are making money with any of the various nut crops,” said Dibuduo.

Dibuduo is worried about this year’s outlook. He says winery demand for Valley grapes has taken a big hit because of international competition. Some grapes, he says, might not get sold.

Other crops like pears, apples and rice are also down from a year ago.

2016-05-31T19:33:30-07:00August 19th, 2014|

CALIFORNIA HELPING FARM LABORERS PAY BILLS DUE TO DROUGHT

“The majority of the jobs here are Ag related so you’re talking close to 80 percent of the community that depends on Ag; from truck drivers to field workers to working in the packing sheds,” said Mendota Mayor Robert Silva.


When water is scarce, so are jobs in the fields — making it harder for people to pay rent. 

“People are working but they’re not working as much as they used to,” said Silva.

Which is why the state of California is helping laborers pay their bills. The Department of Housing and Community Development is offering drought housing rental subsidies in 24 counties including Fresno, Tulare and Merced.

“I wouldn’t expect it to be available past November but hopefully the drought will have subsided by then and people will be getting back to work,” said Evan Gerberding of DHCD. 

There’s roughly $7 million left from the subsidies available for people who can’t afford rent or utility bills — an emergency net to last families up to three months. The state agency hopes the short term disaster assistance provides some sort of relief. 

In addition to rental and utility assistance, communities like Mendota have ramped up their food distribution.

2016-05-31T19:33:31-07:00August 19th, 2014|

A comparison: How California farms stack-up around the country

By Don Curlee; the Porterville Recorder

Counting the ways farming in California differs from farming in the rest of the country might result in some surprises, especially for proud Californians.

To begin with, farms in California are about 25 percent smaller on average than those in the rest of the country. The contrast between farming here and farming there is even more remarkable when you consider that the state’s smaller farms outpace those in the rest of the country by producing almost five times the dollar amount per acre. Of course, that means farmers in the Golden State receive more income than those elsewhere.

These characteristics of the country’s farm profile come from information collected in the 2012 Census of Agriculture, the latest every-five-years exercise conducted by the federal government. Comparing data from the most recent census with that from the 2007 effort reveals some memorable results.

Some of those results have been compiled by Emma Knoesen, a research associate and Rachael Goodhue, a professor of Agricultural Resource Economics (ARE) at the University of California, Davis. Their report was published in the May/June issue of Update, published by the Giannini Foundation of Agricultural Economics at Davis.

In the conclusion of their report they say: “(The census) indicates that California agriculture remains distinct from U. S. agriculture as a whole, although in both cases farms continue to grow larger in both acreage and market value of production.”

One of the report’s tables shows that almost a quarter of California farms are between one and nine acres, compared to only 11 percent of farms at that size elsewhere in the country. Another quarter of California farms are between 10 and 49 acres, not that different from the rest of the country, and 17 percent fall into that 50 to 179- acre bracket, opposed to 30 percent of farms that are outside the state.

A very telling statistic puts the number of California farms with 2,000 acres or more at 2,434, while the number of farms in the other 49 states with 2,000 acres or more is more than 82,000. Seems that fly-over country has some pretty big spreads, and it isn’t puny backyards where Texans raise their cattle.

Perhaps even more telling is the effect of California’s higher value crops, the vegetables, fruits and specialty commodities. The report says: “The average market value of production per acre of farmland in California was $1,667, compared to $289 in the United States as a whole.”

On average, California farms produced a market value of $547,510, about three times that of other U.S. farms, which averaged $187,097.

Production of high-value fruit and vegetable crops continued in California at about the same pace and in about the same places as reported in the 2007 census. Tree and vine crops dominated the Central Valley counties, and vegetables were the commodities of choice in coastal areas and in the Imperial Valley.

Imperial County registered a strong increase from 2007 to 2012 in the amount of land used to grow vegetables, from less than 69,000 acres in the earlier census to nearly 106,000 acres in 2012. The number of farms growing vegetables there increased as well, from 86 to 105.

Even though the number of California farms decreased from 2007 to 2012, the total market value of their production increased by a little more than 25 percent.

No question, farming is a winner in California and a significant contributor to the state’s economy. If overzealous legislators and social and environmental purists can control themselves enough to leave it alone the state’s different-but-better agriculture can continue to prosper and continue to help overcome world hunger.

 

2016-05-31T19:33:32-07:00August 13th, 2014|

Winegrapes: New acreage helps offset drought impacts

Source: Steve Adler; Ag Alert

Although per-acre yields may be down in some regions due to drought and other concerns, California farmers expect to produce another large winegrape crop this year, as a result of increased acreage. Winegrape harvest has started throughout California, primarily for early varieties of white grapes that are destined to become sparkling wines.

Government estimates issued last week placed California winegrape acreage at 570,000 acres in 2013, up from 508,000 the previous year. About 45,000 of the 2013 winegrape acres were classified as non-bearing.

With the harvest beginning in most areas from 10 days to two weeks earlier than usual, the biggest concern among growers is that many wineries do not yet appear prepared to receive the grapes.

“Being this early, I don’t believe the wineries were prepared to open on time, so right out of the gate we had some quality issues because of early ripeness and delays on the winery side,” Tulare County winegrape grower JR Shannon said. “We’ve barely been picking for two weeks and it is already showing signs that the winery tanks are still full from last year and they aren’t very eager to get grapes in right away.”

Noting that harvest will continue for several more weeks, Shannon said many wineries haven’t even opened yet.

“The early signs are that it is going to be a long, non-grower-friendly season and the wineries are showing no excitement about anything except pinot grigio. We spent a lot of money planting these new vineyards for them and they are not cooperating in getting the grapes into the wineries,” he said.

That view was supported by Nat DiBuduo, president and CEO of Allied Grape Growers in Fresno, who said there is real concern among growers who don’t have contracts with wineries.

“We are getting reports of some of the larger wineries that have decided to bottle as needed, which means the tanks are full. We know the 2012 crop and the 2013 crop were big, and what that has created is that they aren’t buying any more grapes than what has been contracted for. And there are a lot of grapes that aren’t contracted,” he said.

DiBuduo said the vast majority of grapes are under long-term contracts, but there are some that don’t have contracts and growers in that situation are just waiting for wineries to start buying them.

“I hope the wineries start to realize that this is going to be a lighter crop. They will all honor their contracts, but I am hopeful that they will recognize the smaller crop and buy these other grapes. The speculation is that some of these wineries will come out with lower prices when all of these growers are in panic mode,” he said.

In Lodi, winegrape grower Joe Valente of Kautz Farms said harvest at his vineyards would begin this week, putting it 10 days earlier than usual.

“It is probably one of the earliest or second-to-the-earliest starts that I have seen here in Lodi in the past 35 years. We are starting this week, but it all depends on the sugars. Ideally, once we get started we can keep going, but it is all dictated by the sugars,” he said.

Valente also expressed concern about a potential shortage of tank space for this year’s grapes.

“The last two years were large crops, and how empty the tanks are going into harvest will dictate how much we will be able to pick. It depends on the varietals that are in demand. They will find room in the tanks for certain varieties that are in demand,” he said.

On the South Coast, grape grower Jeff Frey of Santa Maria said he has heard talk of tank shortages, but at this point it doesn’t appear to be an issue in his area. A bigger issue for coastal growers is the ongoing drought, he said.

“The situation concerning drought on the South Coast depends on where you are at. We haven’t had any rain to speak of, but growers who were able to irrigate through the winter are looking pretty good. We have a pretty good crop set and we will start harvesting next week, which is very early for us. I have a few vineyards that are out of the periphery that have wells that are going dry and there isn’t much water, so those yields will be down,” he said.

In the Paso Robles area, grower Neil Roberts of Templeton said he is very pleased with the way winegrapes developed this year.

“The crop looks average in size, which is probably a good thing, and the quality looks tremendous,” Roberts said. “We’ve been OK with water. Some of the shallower wells have had some issues, but overall there weren’t any problems. If everything goes well, we should be done by the end of October.”

DiBuduo said the drought is having an impact in the San Joaquin Valley as well. The quality of the grapes being produced is fine and sugar levels are good, but the berries and the bunches are smaller, he said.

“It appears that the overall crop will be lighter than last year and a lot of it has to do with the drought. Growers have tried to maintain the vines and keep them as fresh as possible, but we are hearing from all over the place about growers’ pumps going out and it has been taking several weeks for the pump repair people to take care of the problem,” he said.

Shannon, too, has been having problems with lack of water. He said he has been forced to pay up to $1,200 an acre-foot for water that in a normal year costs $60.

“It is kind of salt in the wound right now with all the other issues we have been dealing with,” he said. “Hopefully the groundwater will last another three months.”

Shannon said he has three or four wells out of commission waiting for pump repair, calling 2014 “the toughest year in my experience.”

Valente said that so far this season, he hasn’t had any problem with wells.

“Our concern is groundwater legislation and what that might mean to us. We keep hearing that farmers aren’t managing our groundwater, and I truly believe that the state and federal governments aren’t managing our surface water,” he said.

2016-05-31T19:33:32-07:00August 13th, 2014|

Caifornia drought transforms global food

Source: Jeannette E. Warnert; ANR News Blog

Due to the California drought and what scientists believe will be a drier future, the state’s farmers will likely move away from commodity crops to focus on high-value products like almonds, pistachios and wine grapes, according to Richard Howitt, agricultural economist at UC Davis. Howitt was used as a source in a lengthy story on Bloomberg.com about repercussions worldwide of the three-year dry spell in the Golden State.

Another source was Dan Sumner, director of the UC Agricultural Issues Center. He said shifts in California ag trends reverberate globally.

“It’s a really big deal,” Sumner said. “Some crops simply grow better here than anyplace else, and our location gives us access to markets you don’t have elsewhere.”

California is the United States’ top dairy producer and grows half of the country’s fruit. In 2012, almonds became the state’s second-most valuable ag crop. The Washington Post reported that in the U.S., almond consumption has grown by more than 220 percent since 2005. In the late 2010s, almonds surpassed the long-running nut leader peanuts (not including peanut butter) in per capita consumption.

The Bloomberg article opened with the story the Fred Starrh‘s family farm in Kern County. The Starrh family was a prominent cotton grower for more than 70 years. The shifting global market and rising water prices prompted the family to replace more of their cotton plants with almonds.

“I can’t pay $1,000 an acre-foot (of water) to grow cotton,” said Starrh, 85.

California grows four-fifths of the world’s almonds, the Bloomberg story said, using enough water to meet the needs of 75 percent of the state’s population. An advocate for bigger water supplies for cities suggests in the story that farmers should be profitable, but it shouldn’t come at the expense of urban water ratepayers.

2016-05-31T19:33:32-07:00August 12th, 2014|

Mexico trade mission and Ag labor issues – Looking Forward

Source: Karen Ross, California Agriculture Secretary

While in Mexico City last week, Governor Brown met with Secretary Navarrete Prida of the Mexican Ministry of Labor and Social Welfare and signed a letter of intent to address labor rights issues for temporary Mexican workers in California – a matter of high importance, of course, for California’s farmers and ranchers.

Moving forward from that promising development, we are working to create a pilot program than connects at least one California agricultural employer with Mexican officials to establish a set of protocols. Our objective is to help curb migrant worker abuse on a national and international basis, and provide stronger assurances to California agricultural employers that migrant labor employed within a H-2A program are not subject to illegal fees, misrepresentation of employment terms, fraud and other issues.

California, the U.S. Department of Labor, and a network of cross border nongovernmental organizations would work with Mexico to establish a bi-nationally available register of certified labor recruitment agencies. In addition, Mexico would develop a system for monitoring, verifying and supervising the activities carried out by recruitment agencies.

In California, the state would identify agricultural employers that voluntarily commit to using certified recruiters.

In the absence of a national immigration solution, this pilot program can be a great benefit to California’s agricultural community and strengthen our bilateral ties with Mexico.

2016-05-31T19:33:33-07:00August 8th, 2014|

U.S. Chicken Farmers Brace for Russia’s Retaliation to Sanctions

Source: Reuters; The Moscow Times

Russia’s threatened ban on U.S. poultry imports, the latest move in a sanctions skirmish over Moscow’s support of rebels in Ukraine, has agriculture companies alert to the risks of a conflict that’s already roiled trading of crops ranging from soy, beef and fruit to California pistachios.

Moscow has struck back against trade sanctions following the downing of a Malaysian jetliner last month by imposing food restrictions, and would add U.S. chickens to Ukrainian soy and other products Russia has blocked since it seized Crimea earlier this year: Australian beef, Latvian and Lithuanian pork, Moldovan fruit and Ukrainian juice.

Russia’s move to limit agricultural trade is seen as a sign the conflict with Washington is heating up. Russia imported about $1.3 billion in U.S. food and agricultural products last year, or about 11 percent of all U.S. exports to the country, according to U.S. Census data.

U.S. pistachio farmers have seen sales to Russia, the seventh largest export market, cut nearly in half this year because political tensions have made Russian importers hesitant to make purchases, said Peter Vlazakis, export market coordinator for the American Pistachio Growers.

Pistachio exporters have “a legitimate fear” about the potential for trade disruptions, Vlazakis said.

Russians may turn for pistachios to Iran, the world’s second largest producer after the United States.

An armed group last month occupied a Cargill sunflower-seed crushing plant in eastern Ukraine, a region supportive of the Putin government, and commodity trader Glencore is expected to have a hard time selling grain silos in the country.

Last week, the farm sector’s attention turned to poultry after Russia’s Federal Veterinary and Phytosanitary Inspection Service said it found signs of the antibiotic tracycline in four shipments of U.S. poultry. The service could not be reached for comment.

The food safety watchdog’s threat to ban U.S. poultry imports, reported in government-controlled Russian media, came days after fresh U.S. and EU sanctions over Russia’s support of rebels in Ukraine.

Russia is the second largest importer of U.S. broiler meat behind Mexico, buying 276,100 tons last year, or 8 percent of U.S. exports, according to the U.S. Department of Agriculture. Russia’s purchases from January through May 2014 represented 7 percent of U.S. exports.

U.S. poultry exporters and producers said there were no problems with the meat. For some, the situation was hardly their first time dealing with trade troubles with Russia.

Russia has repeatedly been accused by the West of using food safety concerns and its veterinary service as instruments to ban supplies from countries with which it has strained relations or to protect its own industry. Explicitly banning a country’s products for political reasons would violate World Trade Organization rules.

Trade restrictions in prior years have caused some companies to back away from deals with Russian importers, said Jim Sumner, president of the USA Poultry & Egg Export Council.

The council has advised poultry companies to keep in contact with Russian importers so they will get early warnings should Moscow impose a ban.

For Russian President Vladimir Putin, targeting agricultural imports could be a low-cost way to retaliate against U.S. sanctions over Ukraine.

Other threats, especially any involving Russia’s export of oil and gas shipments, likely would bring additional sanctions on Moscow, said Robert Kahn, a senior fellow for international economics at the Council on Foreign Relations.

Russian sanctions on farm products would be “quite painful” for the companies affected, although the macroeconomic effects on the U.S. economy would be small, he added.

“These are fully political decisions,” Kahn said.

2016-05-31T19:34:11-07:00August 7th, 2014|
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