Russia’s import ban will hit farms and jobs

Russia’s revenge move to slap sanctions on Irish food and drink imports will hit jobs and prices, farmers have warned.

The imposition of a wide-ranging ban on produce from the EU, US, and other countries by Russia, which comes in retaliation for Western sanctions against Moscow over its intervention in Ukraine, will be a particular blow to the dairy industry.

Agriculture Minister Simon Coveney expressed “most worry” over the impact of a €4.5m loss to cheese producers, who are heavily clustered in the Munster region, but said the agriculture sector as a whole could weather the ban.

The Irish Creamery Milk Suppliers Association said it expected producers such as Glanbia, the Irish Dairy Board, Kerry Group, Aurivo, and Dairygold to be among the worst hit by the ban, though it did not expect any producers to go out of business because of the sanctions.

“The Russian move is going to cause displacement, producers will now have to try and find other markets and see what impact that has on prices,” an ICMSA spokesperson said.

With Ireland exporting some €232m worth of food and drink to Russia last year, Sean O’Leary, national dairy committee chairman within the Irish Farmers Association, said: “This has really knocked us back. It is going to cost jobs and could have a severe impact on milk prices. This is obviously a big blow, Russia being the largest market for EU cheese exports.”

ICMSA president John Comer said producers could “ride out the storm”.

“In the short term, it will have an impact on jobs and on production and farmers’ take-home price,” he said.

“If you are one of those people that lose your job, of course it is significant, but I think when we get some time we’ll be able to find new markets.”

Mr Coveney — who has set up a helpline for those affected and is still trying to clarify exactly what produce is on the banned list — said that Ireland was only the EU’s 13th biggest exporter of food and drink to Russia.

Food and Drink Industry Ireland’s Cormac Healy said the ban would have “serious” spin-off implications, as well as a direct hit.

“The indirect impact is also a major concern as there will be significant volumes of displaced products forced on to the EU and international markets that otherwise would have gone to Russia,” said Mr Healy.

“This is happening at a time when international markets are already faced with strong supply, this is particularly the case for dairy products, and this is expected to affect prices.”

IFA president Eddie Downey warned: “This could have a serious impact on our dairy industry, particularly the cheese sector.”

The ban is in revenge for the US and EU freezing assets and banning loans on individuals and companies in Russia, which they accuse of increasing tensions in eastern Ukraine by supplying arms and expertise to pro-Moscow rebels.

Russian prime minister Dimitri Medvedev said the ban would last one year, adding: “There is nothing good in sanctions and it wasn’t an easy decision to take, but we had to do it.”