UK pork farmers threatened by Russian import sanctions

[cronus]

http://www.bbc.co.uk/news/business-28737071

Consumers to face cheap bacon and cheese for months agony

UK pork farmers will face pressure to lower prices because of Russia's ban on food imports from a number of Western countries, say experts.

The ban is expected to increase the supply of pork on world markets.

"This will increase competition on global markets," said Mick Sloyan, director of BPEX, the UK trade body for pork producers.

"It may have some knock-on effect on the EU market and, hence, the UK," he added.

The ban bars imports from countries which have imposed sanctions on Russia.

The tit-for-tat ban, expected to last at least a year, includes the EU, US, Australia, Canada and Norway.

Russia imports around 90% of its pork with Canada supplying 40% of that. The ban means that those farmers will now have to find alternative markets.

James Leavesley, chief executive of Midland Pig Producers, said this could lead to oversupply in the market, with pork exports originally bound for Russia now set to be sold elsewhere.

"If Russia bans pork from other countries there is a danger it could be dumped into the UK market," he says.

(continued, like danger - not risk averse at all)

[MrJonno]

Get to fuck over Russia and get cheap burgers, we should do this brink of nuclear war thing more often

[Tero]

Finns have milk and cheese sitting in containers with russian text sitting in warehouses. Cheap milk in stores soon.

[laklak]

More cheap pig for everyone!

I'm not seeing a downside.

[JimC]

Will nobody think of the poor piggies!

[klr]

Will nobody think of the poor piggies!

Yes ... serve 'em up, pronto.

[JimC]

In Putin's Russia, pork eats you!

[klr]

Russia has 17 million square km of land ... surely they can farm pigs somewhere?

Bring back collectivization, I say.

[JimC]

Absolute swine, these Russkis...

[piscator]

I see what the swineherds are squealing about, but it's just the Russians trying to root up something with which to negotiate other trades.

[mistermack]

I can't imagine why Russia imports so much pork.
They produce a lot of grain, they produce a lot of gas and oil. That's basically all you need for a pig farm.
If Canada can do it, why can't they?

[klr]

Getting serious for a moment ...

Absolute v. Comparative advantage - Economics 101, the sort of thing you learn at school. So, even if the Russkies could produce its own pig meat more cheaply than importing it, it might still not make economic sense to do so, given the opportunity costs involved.

http://en.wikipedia.org/wiki/Comparative_advantage

[Svartalf]

In Putin's Russia, pork eats you!

Why do you think the Mob invests in pork farms?

[mistermack]

That comparative advantage thing might work where you have very low unemployment, where it pays you to have people working on the most profitable sectors, and buy in stuff that other people can do much better.
But if you have high unemployment, then it doesn't pay to be importing stuff that you can make yourselves.
Russia has a low unemployment rate at the moment, so I guess there isn't the scope for building up a low-skilled industry.
But if he's banned the imports, I guess that they'll have to get going, especially as the price of pork on the domestic market will rise. It's an opportunity for any russian entrepreneur.