Russia and China impose zero tolerance on ractopamine

Thursday, April 4, 2013

The American meat industry is on the horns of a dilemma, according to a report published last month by the United States Meat Export Federation. A technology that increases efficiency of production is being rejected by leading markets, to the point where it costs the industry more to use the product than it gains.

The product in question is ractopamine, widely used in both the beef and pork industries and adding about US$5 a head, a substantial amount when margins are thin.

But leading importers Russia and China are arbitrarily imposing zero tolerance rules. Loads are rejected if even a whiff of ractopamine is found.

While Russia buys only seven per cent of U.S. beef exports and four per cent of pork exports, the meat export federation estimates that losing those markets would cost the industry $800 million or about $15 per head of cattle and $4 a pig. The reason is the Russians pay a premium for offal, or variety meats, over other customers. If they aren't buying, those products are otherwise a drag on the market.

China remains closed to American beef sales, but also intends to implement a zero tolerance policy on ractopamine residues in U.S. pork. In 2012, China purchased nearly 16 per cent of all American pork exports, based on volume, worth about US$704 million and nearly half of the variety meats already mentioned. It's no surprise then that the industry is looking to ways to segregate treated and untreated animals, which will have a cost in itself. BF