Author: Chris Schwinden
The Washington Post put together a good summary of the potential implications of Russia’s import ban on food imports primarily from the U.S. and E.U. While the ban may not have a big impact on North Carolina overall (the state doesn't export many chickens to Russia, nor does it export many nuts, soybeans, or grains anywhere), the impact on the state’s pork industry could be more significant.
Digging into the data, Russia is not one of North Carolina’s largest trading partners, but it’s not insignificant either. In 2013, North Carolina sent $181 million worth of goods to Russia, making it North Carolina’s 27th largest trading partner (about on par with U.S. exports overall where Russia ranks #28). While trade fluctuates from year-to-year, tobacco and pharmaceuticals are generally two of the state’s largest exports there.
But in recent years, Russia has become a much larger export market for North Carolina pork — it’s grown from virtually zero in 2006, to nearly $40 million in the first half of 2014 alone. This year, North Carolina exported nearly as much pork to Russia as it did to Japan (typically N.C.’s largest pork importer, although trailing China this year).
This new ban was announced just as U.S. suppliers were recovering from a previous ban. U.S. pork exports to Russia fell sharply in 2013 when that country banned American pork and beef because of a dispute over a feed additive. As the Post article above references, only two U.S. pork plants have regained eligibility to ship to Russia — presumably, these two plants are in or near North Carolina. The state’s $37.7 million in exports lead the nation, followed by Virginia ($13.2 million), and South Carolina ($9.5 million). Russia has also previously banned E.U. pork imports due to an African Swine Fever outbreak in Lithuania, perhaps also benefiting U.S. exporters.
In short, just as it appeared North Carolina pork exporters had a leg up on a growing export market, yet another pork ban may temper that progress. While it’s not a catastrophic event for North Carolina-Russian exports (tobacco and pharmaceuticals are not subject to the ban), nor pork producers in the state (Japan and China are still the largest export markets), it’s one less opportunity to expand North Carolina's global footprint.