February 23, 2005

 

 

US poultry companies feel brunt of bird flu outbreak

 

Poultry stocks at key producing farms across the US fell fell as fears of bird flu dampened consumption of poultry

 

US Sanderson Farms led the decline, closing down 3.4 percent at $45.06. The Mississippi company produces over 1.5 billion pounds of fresh and frozen chicken products a year, posting more than US$1 billion in sales in 2004.

 

Pilgrims Pride, which processes more than 6 billion pounds of poultry a year, lost 2.5 percent to US$37.76. Tyson Foods, which processes chickens, alongside beef and pork products, fell 1.5 percent to US$16.78.

 

Hormel Foods, the biggest U.S. producer of whole and processed Turkey products, alongside beef and other meat products, finished at US$31.57, down 1.3 percent. The company today reported fourth-quarter earnings that were two cents ahead of estimates, and raised its outlook for 2005.

 

Agricultural biotech company Embrex, a leader in "in ovo" technology, closed down 0.7 percent at US$10.98.

 

On Sunday, Dr Julee Gerberding, head of the Centers for Disease Control and Prevention, told a meeting of the American Association for the Advancement of Science that scientists are expecting the bird flu, which has swept through Asia in the past year, to genetically change into a flu that can affect people, the Associated Press reported.

 

The flu has led to the slaughter of millions of birds and caused a number of human deaths. The mortality rate is high at about 72 percent of identified patients, said Gerberding. More human cases are expected and there is a high threat the virus will mutate to allow for human-to-human transmission, she said.

 

The flu spreading through Asia is a pathogen belonging to the H1 family of highly contagious viruses.

 

"Each time we see a new H1 antigen emerge, we experience a pandemic of influenza," said Gerberding. Millions of people around the world died in 1918, following the outbreak of an H1 flu in Europe.

 

US poultry producers took a hit early last year when isolated cases of avian flu were found on farms in Texas, Delaware, New Jersey and Pennsylvania.

 

A number of countries, including Japan, stopped importing US poultry, while Russia and Hong Kong stopped importing from the affected states.