June 5, 2008

Poultry exports from Arkansas to Russia suspended on account of bird flu  
 
 

Following the discovery of a low pathogenic strain of bird flu in an Arkansas hen flock, Tyson Foods Inc. has announced that the US has voluntarily suspended any poultry exports from Arkansas to Russia for 90 days.

The state accounts for one-third of US poultry exports to Russia.

All fresh or frozen poultry meat derived from birds raised or processed in the state and slaughtered on or after June 2 would be ineligible for export to Russia.

Tyson, however, remains confident it can continue to serve its Russian customers through facilities in other states and said operations are unlikely to be affected by the move.

Analysts also remained confident in Tyson's export capabilities and said that the bird flu event should have few lasting effects.

Tyson on Tuesday began culling the 15,000-chicken flock.

BMO Capital Markets analyst Ken Zaslow said the likelihood that any trade disruptions would be temporary is exceedingly high.

Meanwhile, Japan has decided to implement a temporary ban on US poultry.