The top U.S. trade official voiced frustration that Russia has not resumed imports of U.S. poultry, despite an agreement to do so, and said the countries were working to iron out the latest rift.

"We're frustrated. We thought we reached an agreement. We had a protocol. We signed it and then, literally at the last minute, there is a new wrinkle," U.S. Trade Representative Ron Kirk told reporters.

Russia, which had been the top export market for U.S. chicken, has banned shipments since January, after Moscow said a chlorine treatment commonly used by U.S. processors did not comply with its food safety regulations.

Russia's animal and plant health watchdog, RosSelkhozNadzor, said veterinarian inspectors must check U.S. poultry processing plants before it will lift the ban, which could take weeks.

"This behavior is just not acceptable," Kirk said after testifying before the Senate Agriculture Committee. "It just seems to always be something new."

Kirk said U.S. officials were working with Russia to resolve the matter, the latest in a series of meat trade disputes between the two countries. But he downplayed Moscow's request to inspect U.S. plants.

"The notion of having to come in and inspect plants, we think, will just unnecessarily and unreasonably delay the process and it's not compliant with what we agreed to," said Kirk.

Senate Agriculture Committee Chairman Blanche Lincoln told Reuters the additional plant inspections are unnecessary.

"If we have to reopen and rediscuss things every time like this, it's virtually impossible for our producers," she said.

U.S. President Barack Obama and Russian President Dmitry Medvedev reached the deal in June to restart shipments. As part of that deal, U.S. chicken companies agreed to use non-chlorine treatments on chicken bound for Russia.

U.S. Agriculture Secretary Tom Vilsack told reporters the administration wants Russia to honor the original deal, and may ask Obama to get involved again if necessary.
U.S. not Willing to Reduce Poultry Quota
The U.S. Agriculture Department began posting plants approved to ship to Russia on its website in late July, including plants owned by top producers Tyson Foods Inc , Pilgrim's Pride Corp and Sanderson Farms Inc .

"All the Russian Federation has to do is post that list on their website so that shipments, once they arrive there, can be accepted," Nefeterius McPherson, a USTR spokeswoman.

Pilgrim's Pride sold out its entire August volume from Russian-approved plants, its chief executive said.

Despite the uncertainty, poultry is being loaded onto ships bound for Russia, said William Roenigk, a senior vice president with the National Chicken Council.

He said there were between 50,000 and 60,000 tonnes of leg quarters targeted for Russia on ships and in cold storage. The first shipments from two ships with a combined capacity of about 20,000 tons could leave soon.

"Before a ship leaves a U.S. port, I think they would feel more comfortable," Roenigk said, if the USDA and the USTR "said, 'OK, we have addressed the Russian concerns that they raised.'"

The United States shipped 733,000 tons of poultry meat to Russia worth $752 million in 2009. The U.S. quota for 2010 was set at 600,000 tons, but Russia has allowed other suppliers to use a quarter of it.

Some analysts contend Russia enacted the ban to protect domestic production from competition.

USDA's Vilsack said he recently spoke with Russia's agriculture minister who wanted to know if the United States would be interested in voluntarily reducing the trade quota.

"I obviously indicated that we were not interested in any voluntary reduction, that we wanted the marketplace," he said.

Farha Aslam, an analyst with Stephens Inc Equity Research, said in a research note that while the U.S. government objects to the U.S. quota cut, the industry may not because it could have trouble filling the current 450,000 tons quota. (Reuters)