March 3, 2004

Bird Flu, Mad Cow To Cost Meat Industry US$10 Billion In Meat Sales

The impact of the recent bird flu and mad cow disease outbreaks on he meat industry is expected to be severe. With global bans prohibiting exports of chicken and beef by one third, losses faced by countries whose exports are restricted could reach US$10 billion of the annual US$33 billion trade of bans are kept in place, the U.N. Food and Agriculture Organization said.

An estimated 6 million tons of meat marked for export are affected by these bans, the Rome-based agency said in a statement. Bans on beef imports from the U.S. and Canada due to mad-cow disease fears are cutting seriously into their $4 billion, 1.6 million-ton annual exports.

These countries, along with 10 Asian governments, have also reported bird flu outbreaks, the agency said. They account for 4 million tons, or 50%, of the world's poultry exports, it said.

Authorities in Asia have culled some 100 million birds to prevent further spread of avian flu. A milder strain of the disease has broken out in the U.S. and Canada.

The first case of mad cow disease was found in the U.S. in December, and a single case in Canada in May. Foreign bans on U.S. beef have cost the country about 90% of its export sales, which had accounted for about 10% of total U.S. production.

The food agency also noted that demand for pork is rising. In Japan, pork prices increased by 40% last month after imports of U.S. beef and Asian poultry were banned.