Avian flu in state threatens exports

Dozens of countries are likely to block poultry exports from Arkansas because of a case of avian influenza, officials said Wednesday.

The U.S. Department of Agriculture said Wednesday that a case of highly contagious avian flu was found in a turkey farm in Boone County. The affected flock contained more than 40,000 turkeys. Surviving birds will be euthanized.

Bruce Holland, executive director of the Arkansas Livestock and Poultry Commission, said a quarantine has been put in place at the farm, workers are isolated, and vehicles moving in or out of the operation are being sanitized.

"This is the reason the commission exists," he said. "I think we've had a good, swift response and we hope there aren't any outbreaks in the rest of the state."

The news came just two days after the Missouri Department of Agriculture confirmed the second instance of the disease in its state. More than 50,000 turkeys in Missouri were affected.

In a statement, Butterball said infected flocks in both states belonged to farms contracting with the company.

Bruce Tencleve, assistant director of commodity activities and regulatory affairs at the Arkansas Farm Bureau, said Arkansas exports 3.5 billion metric tons of poultry, with an estimated value of about $4.6 billion, around the world.

Arkansas surpassed North Carolina in the number of turkeys raised, producing more than any state except Minnesota last year, and the state is No. 3 -- behind Georgia and Alabama -- in the number of meat chickens raised, according to the USDA.

"To say this is significant to the state of Arkansas is an understatement," Tencleve said. "It's big, no doubt about it. What we don't know is what's going to happen with it just yet."

The USDA said it's notifying trading partners, which will decide how to proceed.

James Sumner, president of the USA Poultry and Egg Export Council, said more than 30 countries are likely to block poultry exports from either Boone County or the state as a whole.

He also said there's a possibility that some countries will follow the lead of China, which blocked all poultry exports from the United States in January when the first instances of avian flu were detected.

But Sumner said the biggest question is how Mexico, the United States' top poultry importer, will respond.

"Initially, we are expecting Mexico to restrict Arkansas exports, but we are hopeful that will soon be reduced to the affected county," he said. "Otherwise, this is going to create some extreme hardships for Mexico, both from the standpoint that it's going to dramatically increase consumer prices and plus a lot of the breeding stock are produced in Arkansas."

Sumner said it's hard to put a number on the economic damage to Arkansas because major poultry companies, such as Tyson Foods, can export meat from operations in unaffected states, while keeping Arkansas poultry inside the United States.

"It's going to be a logistical problem or challenge, but they're certainly able to do it," he said.

The last time avian flu was detected in Arkansas was July 2013 in a Scott County Tyson Foods flock. The flock was isolated, euthanized and disposed of to prevent the spread of the disease.

However, the disease currently spreading is far deadlier to birds, killing 80 percent to 90 percent of the birds it comes in contact with, Sumner said.

One bright spot is the disease has only shown up in turkey farms in Minnesota, Missouri and Arkansas, which means it might not affect chickens. Sumner said the USDA is conducting tests now.

The disease does not affect humans, the USDA said.

Dustan Clark, extension poultry veterinarian and associate director of the Center for Excellence for Poultry Science for the University of Arkansas System's Agriculture Division, said poultry producers are tightening already stringent biosecurity requirements to combat the disease.

Producers wear special clothing for farming, shower and wash hands whenever working with the birds, keep poultry houses locked, disinfect equipment and quickly dispose of dead birds, Clark said.

"You don't want to get this in your birds because there is such a high mortality rate," he said.

Clark said that because the disease is most likely spread through migratory birds, backyard flocks may be especially at risk. Commercial chicken and turkeys are grown in enclosed barns and do not come in contact with outside wildlife.

Clark said he's leading a seminar in Jasper at 6 p.m. today on biosecurity procedures for backyard poultry growers. Additional seminars will be held in Boone County and the surrounding area.

Shares of poultry-growing companies fell sharply after the USDA confirmed the avian flu case in Arkansas. Tyson was down 5.6 percent, Pilgrim's Pride was down 4.4 percent and Sanderson Farms was down 4.2 percent Wednesday.

Tyson stock has fallen nearly 10 percent since McDonald's said it was moving away from chicken raised with human antibiotics.

Sumner said the disease is not being spread from farm to farm by industry, but instead by migrating birds. He said no infected bird has entered the food supply.

"This is what we're trying to explain to the other countries so they understand we have control of the situation," he said. "Really, there should be no concern from foreign countries."

Business on 03/12/2015

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