January 16, 2006

US expects chicken exports to be hit by bird flu
 

US chicken exports will be 142,000 tonnes less than previously forecast because consumers in Turkey and other countries affected by the deadly bird flu disease are eating less poultry, the USDA said on Thursday.

Shipments are now estimated at 2.7 million tonnes in 2005, rising to a forecast 2.8 million tonnes in 2006. This is a cut of 56,000 tonnes and 86,000 tonnes respectively, the USDA said in its monthly world commodity report.

The cut in the forecast was made partly to reflect consumer reactions to bird flu as there had been significant declines in Turkey and other markets the US exports to, said Shayle Shagam, a USDA analyst.

Hurricane Katrina had also caused high prices during last summer that discouraged buying. Shagam said US poultry exports could begin to recover later this year if the deadly strain of bird flu is not found in more countries.

The US Poultry & Egg Export Council, a trade group, is doubtful that exports will be hurt by bird flu. James Sumner, president of the council said he is encouraged by the present figures and would not be surprised if figures turn out to be better than what the USDA predicted. He said consumer fears in other countries should be dispelled once they are better educated about bird flu.

US poultry production is valued at about US$23 billion annually, according to the USDA. 1.8 million domestic birds, most intended for export, were tested for avian influenza in 2004. The United States is one of the world's biggest exporters of chicken meat.