January 19, 2007

 

US poultry exports seen strong despite Asia's bird flu cases

 

 

US broiler meat exports are expected to remain strong despite recent new cases of highly pathogenic H5N1 bird flu reported in parts of Asia.

 

Industry sources and poultry analysts said that although there have been some new cases of bird flu found in Japan, Vietnam and elsewhere in Asia in the past few months, they do not expect US exports to fall because consumers around the world are better educated about how to properly handle and cook the products.

 

The virus that causes the highly pathogenic bird flu is easily destroyed by properly cooking the chicken or other poultry.

 

The US has never had a case of the highly pathogenic H5N1 strain of bird flu.

 

Toby Moore, director of communications with the USA Poultry and Egg Export Council in Atlanta, said that so far the organisation has not heard of any problems with export sales to Asia following the reports of recent new cases of bird flu there.

 

He said consumers in Asia and elsewhere have become much more aware that there is little risk from eating properly handled and cooked poultry meat. Therefore, any impact from the recent cases of bird flu on consumption would be expected to be minimal.

 

In November, the last data available, US total broiler exports were up 22 percent from a year ago by volume, and through the first 11 months of 2006 international sales were up 1 percent, according to the US Department of Agriculture.

 

On a regional basis, sales in November to East Asia, which includes the People's Republic of China, Hong Kong, the Republic of Korea, Taiwan and Japan, were up 63 percent by volume from a year ago. Sales for January through November were up 54 percent. Sales to South-east Asia in November were up 114 percent, or more than double, the year-ago figure, while sales for the first 11 months were up 53 percent.

 

Eric Scholer, analyst with Express Market Analytics in Ft. Wayne, Indiana, said he doesn't expect the recent new cases of bird flu to affect US exports. Sporadic cases have occurred over the past two years in most of the countries where the latest cases have been reported.

 

Scholer said the higher value of the US dollar may have more impact on poultry exports than the recent bird flu cases. It costs the importers more to purchase US poultry, so that could weigh on total sales.

 

The greatest concern for poultry exports in the longer term is the possibility that the highly pathogenic bird flu will eventually find its way into the US, which would halt export sales, Scholer said.

 

Russia remained the no. 1 international customer for US chicken in 2006, with 672,664 tonnes through November, representing nearly 31 percent of total sales.