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U.S. poultry industry hails end of Russia trade ban

WASHINGTON, April 1 (Reuters) - U.S.-Russia poultry trade is expected to return to normal in less than two weeks, the U.S. Agriculture Department and industry officials said on Monday as they welcomed Russia's decision to end a ban on the American product.

Earlier Monday, Moscow announced it will lift a ban on purchases of U.S. chicken and turkey on April 10, one month after trade stopped. Russia had complained about antibiotics used in U.S. poultry production, salmonella contamination in some recent shipments and loose U.S. safety certifications.

The U.S. industry defended the safety of its product and some speculated Russia was using the ban to protect its domestic poultry industry or retaliate against new U.S. tariffs on steel shipments from countries including Russia.

"This new protocol should improve communication between our veterinary authorities and help prevent further trade disruptions," Agriculture Secretary Ann Veneman said in a statement.

The agreement between the United States and Russia will provide improved certification and testing procedures, Veneman said.

Last year, the United States shipped about $640 million worth of poultry meat to Russia, mostly low-cost chicken leg quarters. The exports represent the largest single item Russia buys from the United States.

The trade ban prompted complaints from the highest levels of the U.S. government, including President George W. Bush and Secretary of State Colin Powell.

"We expect that the conditions set forth (for lifting the ban)...will readily be met and that trade will return to normal by April 10, the National Chicken Council said in a statement. The organization represents U.S. chicken producers and processors.

While the U.S. poultry industry did not announce any production cutbacks because of the trade ban, domestic leg-quarter prices fell in recent weeks. And news of the end of the trade ban helped firm up U.S. corn futures prices at the Chicago Board of Trade on Monday. The U.S. poultry industry consumes about 10 percent of the domestic corn crop.

As part of the agreement, the United States said it would temporarily exclude 14 poultry plants from a list of exporters, pending inspection of sanitary conditions. These, according to Russia, shipped poultry that tested positive for salmonella.

Most poultry is generally thought to contain some salmonella contamination, which can be eliminated with proper cooking.

The USA Poultry and Egg Export Council said it was disappointed by the suspension of the plants.

"While the U.S. negotiators are aware of 14 alleged infractions, to their knowledge there were not 14 actual facilities involved, as several establishments were cited for more than one positive test," the U.S. group said. Russia is expected to provide the list of plants this week.

The export council also said a "major limitation" on U.S. exporters is a new testing requirement for mechanically separated poultry, a process Russia suspects is responsible for spreading salmonella contamination on meat.

While U.S. shipments are expected to resume April 10, Russia wants a 1996 trade protocol updated within two months.

Richard Lobb, a spokesman for the National Chicken Council, said he thought Russia wanted to update safety certificate procedures within two months. But the question of U.S. use of antibiotics in chicken feed was "left open, as far as I know," Lobb said.