More Countries Ban U.S. Poultry
America’s poultry growers are feeling increasing pain as more of the nation’s trading partners ban imports of U.S. chickens, turkeys, eggs and other products after the discovery of a dangerous strain of avian flu in Texas.
On Tuesday, South Korea, Mexico and the European Union banned U.S. poultry products, joining a dozen countries that previously took such action.
The United States exports about 15% of its production, or about $2 billion of poultry meat, eggs and live birds, according to the U.S. Department of Agriculture.
Only a small fraction of those exports -- about $20 million -- are grown in California. The vast majority of the state’s poultry and eggs is sold to consumers in the Western states, making it a $2.5-billion business.
Still, California industry leaders were in Washington on Tuesday to inform the USDA and other agencies that farmers were taking adequate steps to protect California’s flocks. Last year, federal officials quarantined egg farms in Southern California and restricted their shipments after birds were found with exotic Newcastle disease. About 3 million birds were destroyed and about $160 million spent to eradicate the virus.
“Because of Newcastle disease in California we are on high alert when it comes to security,” said Bill Mattos, president of the California Poultry Federation. He was among those urging federal officials to reassure consuming nations that California farmers don’t have infected flocks.
The greater concern to California’s producers is how long any export ban may last. If borders stay closed for more than a month, there’s a good chance poultry grown in other states could be dumped on the California market.
“If this continues very long and exports from other parts of the U.S. can’t get out, it becomes a huge supply problem and hurts the price of chicken,” Mattos said.
Meanwhile, other large U.S. poultry exporters were bracing for more immediate fallout.
James Grimm, executive vice president of the Texas Poultry Federation, said his membership of about 1,200 growers had annual exports of $150 million to $200 million.
“It does leave a huge economic impact on us,” he said of the export bans.
Rising concern about chicken also prompted the biggest U.S. producer to reassure consumers.
“At this time, no Tyson flocks have been diagnosed” with avian influenza, Tyson Foods Inc. said. “Nonetheless, the companies in the commercial poultry industry are taking the finding very seriously and will adopt every possible measure to ensure the disease remains isolated.”
On the New York Stock Exchange, Tyson Foods shares fell 39 cents to $15.01, and Pilgrim’s Pride Corp., the No. 2 poultry producer, fell $1.05 to $19.26. It was the second day of declines for both companies after the Texas discovery.
