RUSSIA FOOD AID PACKAGE TO INCLUDE U.S. BEEF

WASHINGTON, D.C. (November 6, 1998) – A food aid package for Russia will include at least 120,000 metric tons of beef, the National Cattlemen's Beef Association (NCBA) said today.

"This is great news for cattle producers during the critical fall cattle marketing period," said Dana Hauck, a cattle producer from Delphos, Kansas and chairman of the NCBA International Markets Committee. "We are hopeful the beef aid will help ease some of the pressure on U.S. cattle prices."

"And it's great for Russian consumers, too," he added. "With roughly 30 percent of the Russian population facing winter starvation, U.S. beef will provide them with healthy and nutritious meals, packed with protein, iron and zinc."

The package was negotiated by the U.S. government after NCBA last week urged the U.S. Department of Agriculture to include beef in any Russian food aid package.

"NCBA commends Secretary Glickman for seizing this opportunity to provide humanitarian relief, helping us build Russian confidence in our ability to be a reliable supplier of foodstuffs and ensuring that we do not cede this potentially valuable market for U.S. meat products to the EU," Hauck said.

Russia's grain harvest is expected to be the worst in 50 years, and the problem has been compounded by the devaluation of the ruble and the crisis in Russia's banking system. The administration has said it is prepared to provide additional assistance to Russia if necessary.

The entire aid package includes at least 3.1 million metric tons of food. The beef portion of the package will be sold to Russia under the P.L. 480, Title I program. The long-term, concessional loan program allows the U.S. government to loan Russia the money to purchase the food under terms more favorable than commercial credit. The food aid shipments are expected to begin in December and will be exempted from taxes and customs duties.

-- NCBA --

Initiated in 1898, NCBA is the marketing organization and trade association for America’s one million cattle farmers and ranchers. With offices in Denver, Chicago and Washington D.C., NCBA is a consumer-focused, producer-directed organization representing the largest segment of the nation’s food and fiber industry.