Poultry, egg exports fell 14% in first half of 2015; flu blamed

Poultry exports are tumbling after avian influenza hit the industry this year and countries banned poultry exports from entire states, and in some cases, the entire country, according to data compiled by the Foreign Agricultural Service.

The country's poultry and egg exports for the first half of 2015 fell by 14 percent -- down $386.3 million to $2.4 billion from the same period last year -- the agency reported.

That was the largest drop in export value ever for the first half of the year, according to a report by the U.S. Poultry and Egg Council.

In Arkansas, statewide bans on poultry affected the broiler chicken industry, which escaped the disease when it swept through the country earlier this year. Avian influenza was detected only in turkeys in the state.

Jim Sumner, president of the U.S. Poultry and Egg Council, said Arkansas is one of the country's major broiler producing states.

"It was a turkey flock in Arkansas that created some of the export restrictions," he said. "The broiler industry has been the unfortunate recipient of injury as a result of those avian influenza cases that, for the most part, have not even impacted broilers."

Countries have been lifting import restrictions on poultry from affected areas. Hong Kong announced this week that it has lifted restrictions on counties in Arkansas, Washington, Oregon and California. But Mexico, the industry's largest export market, has not removed restrictions, according to the U.S. Poultry and Egg Council report.

This means that the domestic market is flooded with poultry products that are usually exported to other countries, which brings down prices in grocery stores across the country. Sumner said that the price of leg quarters -- the United States usually exports about 40 percent of leg quarters -- has dropped.

Donnie Smith, Tyson Foods chief executive officer, said in an earnings conference call last week that export bans have cut into state's poultry industry.

"We obviously would love to see some of these export bans removed which -- third quarter -- has particularly hurt us a bit in Arkansas," he said during the conference call. "So, I'd love to see that improve."

Veterinarians in the state are increasing efforts to educate farmers on how to prevent avian influenza, which could make a comeback this fall.

Dustan Clark, extension poultry veterinarian and associate director of the Center for Excellence in Poultry Science for the University of Arkansas System's Agriculture Division, said avian influenza dies down in hot climates.

But as temperatures cool and waterfowl, which carry the disease, start migrating south, avian influenza could start spreading to the country's poultry farms.

Waterfowl, including ducks, geese and swans, usually migrate in October, Clark said. But the exact timing varies every year.

More than 48 million birds were killed in the country as a result of the avian influenza outbreak earlier this year. About 10 percent of the nation's egg flock and 7 percent of the turkey flock were affected.

Because the disease is spread by migrant waterfowl, backyard flocks that aren't raised in enclosed barns are especially at risk, Clark said.

"What we're trying to do is make certain folks are aware, they are educated and they are practicing the best biosecurity possible," he said.

Worth Sparkman, Tyson Foods spokesman, said all Tyson employees who have contact with live birds will receive additional training, and all Tyson-owned birds will be tested for the virus before they leave the farm.

"Tyson Foods has been preparing for this possibility since the spring," Sparkman said.

Marvin Childers, president of the Poultry Federation, which is a trade industry representing Arkansas, Oklahoma and Missouri, said he and the Poultry Federation have drafted minimum standards for farmers and companies to prevent an outbreak.

Sumner said it has been seven weeks since the last reported case of avian influenza.

"Everyone's bracing for what could happen this fall when the migratory birds resume flying south from their summer vacation up North," Sumner said. "We're hoping for the best and preparing for the worst."

Business on 08/12/2015

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