October 18, 2005

Rising poultry prices likely in Europe as bird flu advances
 

European food processors are likely to see rising poultry prices as the bird flu makes its way across the EU.

UK's Northern Foods, for example, has already starting blaming the bird flu and the resulting supply shortage for the rising prices of chicken meat it uses in its processed foods. As a result, the company is now buying more expensive locally reared chickens.

Should the disease hit Europe hard, the EU might have to cull entire flocks to stop the disease from spreading and infecting humans, thus resulting in supply shortage for food processors.

At the same time, food processors also face the possibility of consumption drop due to consumer fears, even though the virus cannot infect humans through the eating of poultry meat.