Finland's pork industry reeling from Russian counter-sanctions, bailed out by China

© Xinhua

Finnish Agriculture Minister Petteri Orpo said the meat exports to China may, in the long term, offset the losses caused by import restrictions levied by Russia

After Finland's pork industry was dealt a major blow by a Russian ban on pork imports, another BRICS member China has authorized the Finnish meat industry to export pork to China.

China's Agriculture Ministry confirmed on Friday that Atria and HKScan, two Finnish companies, have gained permits to export pork to China.

Finnish Agriculture Minister Petteri Orpo said the meat exports to China may, in the long term, offset the losses caused by import restrictions levied by Russia. Finland's Customs statistics show that the country exported about 5,000 tonnes of pork to Russia in 2013.

Russia has banned imports of pork as well as other meat and dairy products, from Western countries, Australia and Japan. It is retaliation for the West's sanctions on Russia over the Ukraine crisis.

"The volumes of pork exported from Finland to Russia have been so large that several new export countries must be found to replace it," says Senior Inspector Joni Haapanen from Finnish firm Evira.

Finnish exports to China will be viable despite the costs of the long transportation chain, local media reports said quoting experts.

Markku Hirvijarvi, a director from Atria, said the decision was "a very positive message", Finnish national broadcaster reported.

Last summer, Chinese officials toured Finland and inspected slaughterhouses and meat processing facilities. China is the world's largest pork producer and consumer.

Meanwhile, China had barred pork imports from six US processing plants and six cold storage facilities last year to enforce its ban on the use of a feed additive that promotes lean muscle growth.

China currently requires third party verification that US pork shipped to the country is free of the additive ractopamine, which is sold for hog farm use under the name Paylean.

Besides pork, the Finnish food industries are also seeking possibilities of exporting other food products. However, any fast relief to the dairy sector is not expected from the Chinese market, reported.

Finland is among the western countries that have joined the United States and the European Union in imposing sanctions on Russia to protest its actions in Ukraine.

Meanwhile, European food imports in Russia have been replaced by supplies from Brazil, Argentina, Turkey or Egypt.

Comment: The Finnish pork industry was looking at rising costs and lower profits due to international competition, and the Russian sanctions did not help:

The number of pig farms is set to decline by half in Finland by the year 2020. Of the 1,500 farms currently operating, just some 750 will remain in five years' time, according to the union.

Jukka Rantala of the MTK explained: "Costs are going up and product prices are static. It's clear that there's going to be trouble. Individual pig farms will get bigger and bigger, with production staying the same but with larger and more spaced out facilities."

Pig farm profitability has also suffered a downturn due to tightening international competition and to the sanctions trouble with Russia.

This goes to show just how out of touch with reality the EU has become, throwing more chaos into the system by following NATO's lead and acting aggressively towards their previous Russian allies. For more brain food check out:

Chomsky: We Are All – Fill in the Blank.

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