990389 USA Meat Donations to Russia to Begin In April

Washington - The United States said it would start shipping vast amounts of meat to Russia in April as part of a nearly $1 billion food aid package to help the struggling country.

Agreement on the final terms of the meat deal were worked out on the eve of the Washington visit of Russian Prime Minister Yevgeny Primakov. He will meet next week with President Clinton and others to try to win help in restructuring debt and negotiating other agricultural and energy pacts.

In addition to helping Russia, the package of beef, pork and poultry aid also supports U.S. livestock producers hard-hit by slumping prices.

John Reddington, director of the livestock and poultry division at the U.S. Agriculture Department's Foreign Agricultural Service, said the final details were worked out with Russian negotiators late Thursday.

“All of the issues have been resolved,” Reddington said.

Purchase authorizations for the U.S. meat should be released by the USDA next week, with bids coming from Russia soon after and shipments beginning next month, he said.

Under the package initially agreed to late last year, the United States will provide low-interest, long-term loans for 120,000 metric tons of beef, 50,000 metric tons of pork and 50,000 metric tons of poultry. The massive food aid package also includes wheat, corn, soybeans and seeds.

Russia, which had its worst grain harvest in 40 years, sought the $1 billion pact after devaluation of the rouble made food imports too expensive.

The USDA was eager to work out a deal that would also help U.S. farmers facing depressed prices from huge global supplies and shrinking demand from key export markets like Asia.

American cattle prices fell sharply last year, while hog prices plunged to 50-year lows in late 1998. Although prices have risen this year, they remain at historically low levels.

In meetings next week, Russia and the United States are expected to discuss prospects for providing more U.S. food aid. But the USDA insists it will not make any decisions until confirming that the first package is distributed to those in need, not hijacked by criminals or unscrupulous officials.

The U.S. meat industry has been anxiously waiting for final arrangements to be made by the two countries so meat purchases can begin. Negotiations were slowed by confusion over the cuts of meat to be included in the package.

“We're very pleased,” National Cattlemen's Beef Association chief economist Chuck Lambert said. The amount of beef to be shipped to Russia -- 120,000 metric tons -- is roughly equal to one week of U.S. beef production, he said.

“From a long-term standpoint it helps establish a presence in their market and lets the Russian trade sample our product,” Lambert said. “As the Russian economy rebounds, and it will, our product will be there.”

Reddington declined to describe the cuts of meat included in the pact. But the USDA previously said it would provide Russia with beef chucks, rounds, trimmings, hearts and livers and pork trimmings, picnics and bone-in hams.

The poultry portion is expected to include leg quarters, a popular food among Russians.

Last month the USDA reported 517.8 million pounds of pork were in storage, the largest amount ever, and analysts expect the department to report an even larger amount for February.

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