Meatpackers face the risk of shipping to Russia and not getting paid

Until the exporting companies come up with a solution, the scenario of shipping to Russia is expected to only get increasingly more complicated. Meatpackers are the first the take the brunt of the blow.

Shipping companies have announced route reassessments, and banks in the country are having trouble sending remittances abroad – even though the Swift system is still operational.

“Everyone is reevaluating everything, and even Russian importers must not know what to do,” says Daniel Freire, president of Sindicarne do Pará, one of the country’s major beef suppliers.

An important pork and chicken producer called attention to the fact that the Russians have not always paid the value of their imports adequately. Now, with the current aggravating factors, the risk of default increases even further.

Aside from future shipments, it is also essential to think about products already on their way. Although there is a signal from the importers in most cases, Freire recalls that the rest receivable is suspended up to 40% pre-shipment.

Russia imported only 9,000 tonnes of pork in 2021 (until 2017, it was the biggest buyer) but opened a quota of 100,000/t until June.

In the case of cattle, shipments increased, with the United States becoming the third most important destination in January, following a long period of an embargo on some plants due to allegations of hormone use that were never proven.

Source: Money Times

To read the full original article, please visit:

https://www.moneytimes.com.br/frigorificos-ja-sentem-o-risco-de-entregar-se-tiver-navio-e-nao-receber-da-russia/

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