May 19, 2008

EU's lifting of chicken ban may boost US production

News that the EU may lift an import ban on US chicken, in effect since 1997, may trigger increased US chicken production which are already at high levels.

According to Business Week, the European Union's executive commission will recommend to its member countries that the import ban be lifted.

The ban was imposed due to European health concerns over US manufacturers' practice of washing chicken carcasses in a chlorine solution.

The ban on chicken exports cost American producers "an estimated US$180 million a year in lost sales," according to BusinessWeek. 

Chicken companies hailed the news. Fieldale Farms Executive Vice President Tom Hensley welcomed the ban being lifted. While Fieldale "exports a lot of chicken, European countries import most of their chicken from Brazil, he noted, adding that the company would try to tap the EU as a market.

A decision on lifting the ban could occur in October during the next meeting of EU and US trade officials.