Source:  MEATINGPLACE.COM, 5/27/10

U.S. and Russian officials have agreed on four guidelines for resuming poultry trade, according to media reports citing Russian officials.

At least one Wall Street analyst, however, was skeptical, noting past announcements of such deals have proved to be false alarms. We'll believe it when we see it," J.P. Morgan analyst Ken Goldman said in a note to investors.

The guidelines address the Russian law banning imports of poultry rinsed in chlorine, a common U.S. processing practice, as well as political issues, the official Russian news service quoted the head of the country's consumer protection agency as saying. The Russian ban took effect in January.

Trade can resume after an exchange of letters between the U.S. Department of Agriculture and the Russian consumer agency, known as Rospotrebnadzor, the Wall Street Journal reported.
Additional details, including a timeline for the resumption of trade, were not revealed.

"It's a good sign that we're getting closer to the resolution on the issue, which has been pending for nearly six months," the Journal quoted Albert Davleyev, Russia representative of the U.S. Poultry and Egg Export Council, as saying.

Russia is the biggest importer of U.S. chicken, buying 730,000 metric tons of broilers and 8,000 tons of turkey last year, according to Davleyev.

Goldman said he's more optimistic that a deal can get done after today's news. "But we recommend keeping enthusiasm to a minimum until the first chicken-loaded ship actually leaves port," he wrote.

Stephens Inc. analyst Farha Aslam said leg quarter prices would likely trade higher if Russia opens to U.S. poultry.

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