November 28, 2005

USDA: Hungary's bird flu threat hurts poultry sales

Retail sales of poultry meat have dropped 15 to 20 percent in the past few weeks.  Consumption of broilers decreased the most (at about 30 percent), the reductions for turkey, geese, and ducks sales were less. 

During the four-day holiday weekend from October 29 to November 1, poultry consumption returned to normal temporarily. However, following the holidays poultry consumption declined again. Poultry farm sales have been lower than in 2004, but the reductions may be partly attributable to the longer-term production cycle.

The Hungarian poultry associations have agreed on an approximate one-third voluntary reduction in output. However, the supply effects of the reduction may occur only months after the measure due to "deadweight" in the production chain.

The Government of Hungary's public relations campaign on AI has proved to be ineffective. Notices from the general public to the National Veterinary Institute increased from a few cases annually to more than 1,200 cases in the last weeks.  Samples tested for AI have proved to be negative so far. 

The partial monitoring of 8,000 domestic poultry and 2,000 wild birds have also resulted in no findings of AI (the monitoring was mandated until the end of the year by the European Union).

For the full USDA report, click here.