September 5, 2005

US poultry industry to lose over US$2 billion in hurricane damages

The US poultry industry was expected to lose over US$2 billion in damages recently caused by Hurricane Katrina, according to estimates by American Farm Bureau Federation. (AFBF)

AFBF estimated that direct damages to crops and livestock would rise above US$1 billion, while indirect costs, such as higher shipping rates and fuel prices, would also reach at least US$1 billion.

Meanwhile, US poultry giant Tyson Foods had four processing plants in Mississippi State idled recently due to the hurricane.

The company was still trying to determine how many of its hundreds of poultry houses in Mississippi were still in operating condition. Tyson has 58 poultry plants in 11 other states besides Mississippi.

Mississippi ranked fourth in the US in chicken production at 4.3 million pounds last year.

Katrina has also hurt poultry businesses in Georgia and Alabama States, which were among the top four chicken producing states in the US.

Getting electricity and diesel fuel to remote poultry farmers where the chicks grew was reportedly the greatest challenge facing affected poultry companies.