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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsBrazil Meatpackers Gain on Russia as Norway Salmon Farmers Sink
By Denyse Godoy and Natasha Doff Aug 7, 2014 12:06 PM ET
Brazilian meatpackers and a Turkish chicken producer rallied on speculation Russias ban on food imports from the U.S. and Europe will lift sales as agriculture companies from Norway to Poland to Lithuania slumped.
Marfrig Global Foods SA, the Sao Paulo-based supplier of hamburger to McDonalds Corp. (MCD) and Burger King Worldwide Inc. (BKW), rose the most in a week. Minerva SA, Brazils third-largest beef producer, climbed to a 16-month high. Banvit Bandirma Vitaminli Yem Sanayii Ticaret AS, a Turkish chicken breeder, added 4.1 percent. Marine Harvest ASA, the worlds largest salmon farmer, fell the most in almost three years in Oslo.
Russia slapped import bans on an array of food goods from the U.S., European Union, Norway, Canada and Australia, including all cheese, fish, beef, pork, vegetables, fruit and dairy products. The curbs target nations that sanctioned or supported punitive measures against Russia amid a standoff over Ukraine as Russias military masses troops across the border.
Russian retailers can replace food imports from places like Turkey, Egypt, Argentina and Brazil, Natalia Kolupaeva, an analyst at ZAO Raifeisenbank in Moscow, said by phone. For countries like Latvia and Poland there will be big material losses.
Brazil sees an opportunity to boost beef, pork, poultry, corn and soybean exports to Russia because of the U.S. and European ban, agriculture policy secretary Seneri Paludo said.
more...
http://www.bloomberg.com/news/2014-08-07/mcdonald-s-supplier-in-brazil-jumps-after-russia-food-import-ban.html
bbrady42
(175 posts)And then weaken sanctions against Russia. I see.
KoKo
(84,711 posts)Did they think that Putin wouldn't do this or did some group hope that he would because it benefits some particular commodities traders on Wall Street.
The craziness leads me to speculate. Who benefits is a way of keeping perspective...if we can even know that.
Still...our food quality here in the USA for store bought purchases of chicken and pork has been declining for awhile now. I've felt the better meat was going to restaurants, fast foods and for export. I've wondered if we weren't exporting our best out of USA to help our trade imbalances (mostly with China) but to other countries for political/trade benefit.
We will probably get the slack taken up by more of our exports to China...but, then we maybe benefit from some products of better quality here...or not, as it sorts out. And, some segments of Wall Street will make money whichever way it goes.