August 24, 2015

US poultry sector in Iowa suffered US$1.2 billion damages due to bird flu

In the wake of the recent avian influenza onslaught on the US poultry industry, Iowa suffered the deaths of more than 30 million hens and 1.5 million turkeys, in damages amounting to about US$1.2 billion, based on a report commissioned by the Iowa Farm Bureau Federation (IFBF).

With the egg, chicken and turkey sectors being affected, the outbreaks also engendered massive job losses, 8,444 overall and with little chances of reemployment for several of these roles. Lost wages added up to US$427 million along with about US$145 million in lost taxes.

On a national scale, about 50 million birds in the US perished from avian influenza.

The report assessed that layer operations hit by the outbreaks could take 18-24 months before achieving pre-outbreak production levels. "Egg producers able to sell eggs, as well as consumers, can expect to be in an elevated price environment for at least the next six to nine months. Turkey producers are predicted to be out of production for approximately 30 weeks," the report, conducted by Decision Innovation Solutions of Urbandale, said.

It also noted the cumulative impact on the economic activities of feed suppliers, veterinarians, truck transportation and financial institutions as well as a decline in tax revenues.