February 7, 2007

US poultry market reacts to bird flu in the UK

News of bird flu in the UK caused stocks of the largest chicken companies in the US such as Tyson, Pilgrim's Pride and Sanderson Farms to fall even as US experts believe there is no physical danger to the industry.

Some have dismissed the retreat in stocks as a "knee-jerk" reaction.

On Monday, Britain culled 160,000 turkeys following the outbreak of bird flu on a Turkey farm. Several countries swiftly imposed a ban on British poultry.

Analysts say the industry would not a repeat of last year. In 2006, US chicken industry was severely impacted as exports plummeted when consumers in Europe and Asia shunned poultry meat due to bird flu. 

British supermarket chains reported, so far, sales of chicken were unaffected.

The USDA is now shifting its surveillance of birds from the Pacific flyway and increasing its surveillance of migratory birds along the Atlantic flyway on news of the outbreak in the UK.

One particular item of concern to the US industry was that the British turkeys which were infected were kept in barns and so were the chickens in the US. It was previously thought that barns would offer protection against the disease. It remains unknown how the virus got into the barn.

Analysts said the US poultry industry is prepared for an outbreak if it were to happen.

Still, an outbreak in the US could have serious impact on the US poultry industry's export figures and up to 15 percent of its production is exported.