EUROPEAN dairy firms halted production of cheese and butter destined for Russia and Norwegian salmon prices fell, as a wide array of small fresh food producers felt the first impact from Moscow’s tit for tat ban on their goods.

    Russia stopped imports of most food from the West on Thursday in retaliation for U.S. and EU sanctions imposed over Russia’s actions in Ukraine. Roughly 10 percent of EU agricultural exports go to Russia, worth around 11 billion euros (US$14.3 billion) per year, according to European Commission figures.

    While Western multinationals were counting on their local manufacturing plants to help them weather the ban, small farmers are not so lucky.

    They said trucks bound for Russia were turning around mid-route, 8,000 tons of peaches were stranded in northern Greece and fears were spreading about the impact on products ranging from Spanish ham to Scottish mackerel.

    Norwegian salmon prices are expected to fall 10 percent this week as a result of Russia’s food sanctions, traders and analysts said Friday, forcing farmers to scramble for new markets at a time when prices are already under pressure.

    Scotland’s fishing industry also expected to be hit given Russia’s importance as an export market for mackerel. The industry’s main body said it was “extremely concerned.”

    Arla Foods, which says it is Europe’s largest dairy cooperative, stopped production of all goods for the Russian market Thursday night, it said Friday. The market accounts for 1 billion Danish krone (US$179.6 million) a year, or 1.3 percent of Arla’s global annual revenue.

    In Ireland, a major dairy producer, about 70 million euros of the country’s 230 million euros of food and drink exports to Russia were affected, its food board said. (SD-Agencies)