September 15, 2005

US says hurricane damage to farm production less than expected

The US Department of Agriculture (USDA) said overall losses from Hurricane Katrina's damage to farm production was less than expected.

Although millions of dollars would be needed to repair damage to agricultural infrastructure, the USDA said there was almost no impact on domestic corn and soybeans.

Meanwhile, the USDA said Katrina hit the country's poultry industry hardest. Chicken processors in the mid-south, which made up about 15 percent of domestic production, have already recovered and resumed normal production. However, damage to hatcheries was still uncertain.

While the US poultry industry was expected to recover fairly quickly, much depended on the speed at which hatcheries resumed normal production levels, the USDA said.

At the same time, the USDA expected broiler production to be negatively affected only slightly in the near term, although it was disrupted by the hurricane and damage assessment was still ongoing.

Meanwhile, US poultry giant Tyson Foods Inc., reportedly estimated US$10-20 million worth of damages to its four poultry processing plants in Mississippi. The plants were temporarily shut down after losing power during the hurricane.