Russia's Embargo on Poultry Exports Affects Pork, Beef Prices
DES MOINES, Iowa - Russia's embargo on U.S. poultry exports has caused falling prices for pork and beef products, The Associated Press reports.
Many stores began to offer bargain prices on chicken and turkey after the embargo, which was indefinitely lifted on Monday.
Experts say that consumers took advantage of the lower prices and bought poultry over beef and pork, resulting in excess supply for those products.
Pork prices have fallen to nearly 28 cents a pound for live hogs, or around $32 per hog, although prices were climbing toward 40 cents per pound earlier this year, according to the AP.
Cattle are being traded at nearly $65 a head, compared to around $75 a head more than a month ago.
The embargo has exposed a vulnerability in the U.S. food industry, said Iowa State University economist Mike Duffy.
"You get one action clear across the world in Russia, and it backs us up and affects us over here clear in Iowa," he said. "That's, in my opinion, part of the issues that we face when we rely so heavily on exports, when we rely on things that are way outside of our control."
Midwestern economists have said they suspect Russia's ban was meant as retaliation against U.S. tariffs on steel imports.
Many stores began to offer bargain prices on chicken and turkey after the embargo, which was indefinitely lifted on Monday.
Experts say that consumers took advantage of the lower prices and bought poultry over beef and pork, resulting in excess supply for those products.
Pork prices have fallen to nearly 28 cents a pound for live hogs, or around $32 per hog, although prices were climbing toward 40 cents per pound earlier this year, according to the AP.
Cattle are being traded at nearly $65 a head, compared to around $75 a head more than a month ago.
The embargo has exposed a vulnerability in the U.S. food industry, said Iowa State University economist Mike Duffy.
"You get one action clear across the world in Russia, and it backs us up and affects us over here clear in Iowa," he said. "That's, in my opinion, part of the issues that we face when we rely so heavily on exports, when we rely on things that are way outside of our control."
Midwestern economists have said they suspect Russia's ban was meant as retaliation against U.S. tariffs on steel imports.