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 The U.S. Department of Agriculture said on Sunday that a farm in
southern Tennessee that is a supplier to Tyson Foods Inc had been
infected with the virus. All 73,500 birds there were killed by the
disease, known as avian influenza (AI), or have since been
suffocated with foam to prevent its spread.
The outbreak raised concerns among chicken companies because the
infected farm is located near biggest-producing states for chicken
meat, including Georgia and Alabama.
The spread of bird flu would represent a financial blow for
operators because it would kill birds or require flocks to be
culled, and it would trigger more import bans from other countries.
Health officials said the risk of avian influenza spreading to
people or making food unsafe was extremely remote.
The worst-ever U.S. outbreak of avian flu in 2014 and 2015 killed
about 50 million birds, most of which were egg-laying hens in Iowa,
but left the southeastern United States largely unscathed.
Already, U.S. trading partners, including South Korea and Japan,
have restricted shipments of U.S. poultry because of the infection
in Tennessee.
Pilgrim's Pride Corp, the world's second-largest chicken producer,
said it "immediately activated AI response plans and heightened
on-farm biosecurity programs at all Pilgrim's facilities" in
response to the case.
Sanderson Farms Inc, the third-largest U.S. poultry producer,
cracked down on the movement of people and vehicles into its
facilities, said Mike Cockrell, chief financial officer.
"Our whole industry from coast to coast has been put on a heightened
biosecurity alert," said James Sumner, president of the USA Poultry
and Egg Export Council.
Tyson shares on Monday closed down 2.5 percent, while Sanderson
Farms shares lost 2 percent and Pilgrim's Pride shares dropped 1.2
percent.
'BROILER BELT' CONCERNS
The infected farm housed roosters and hens that produced fertilized
eggs, which hatch into the "broiler" chickens raised for meat.
Often, such facilities have even higher security measures than farms
raising birds for slaughter because the breeding animals are more
valuable.
"The thing that's worrisome is that it's in the broiler belt," said
John Glisson, vice president of research for the U.S. Poultry and
Egg Association. "There are so many birds in this part of the
world."
Just in Alabama, across the border from the infected farm, producers
raised more than 1 billion broiler chickens in 2015.
Portions of Alabama are within a zone surrounding the infected farm
in which chickens are being tested for avian flu. Tyson collected
samples from an Alabama farm in the zone, and they tested negative
for the virus, according to the Alabama Department of Agriculture
and Industries.
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Tyson asked government officials to expand the zone around the farm
to 10 miles from 6.2 miles "to ensure all their commercial
operations in the region were disease free," said Donna Karlsons,
U.S. Department of Agriculture spokeswoman. The company manages all
the commercial facilities in the region, she said.
Tyson had no immediate comment. On Sunday, the company said it was
working with state and federal officials to contain the virus.
Of eight chicken houses on the farm in Tennessee, one became
infected, said Tom Super, spokesman for the National Chicken
Council, an industry group. That indicates "the farmer obviously was
practicing pretty good biosecurity," he said.
The farmer will bury the remains of the dead chickens on his
property, said Glisson.
Wild birds, such as ducks, can carry avian flu without showing
symptoms of it and spread it to commercial farms through feces or
feathers.
In recent months, different strains of the virus have been confirmed
in birds across the northern hemisphere, leading authorities
worldwide to cull millions of animals. Several people have died in
an outbreak of avian flu in China.
The strain that struck the Tennessee had a North American wild bird
lineage, according to the USDA.
The USDA said it did not know how the farm in Tennessee became
infected or the strain involved.
"We have been reading of the spread of bird flu in Asia and Europe,
and now to be confirmed here in the U.S. is of serious concern,"
said Ken Klippen, president of the National Association of Egg
Farmers.
Rose Acre Farms, the second-largest U.S. egg producer, raised its
risk level to "tightest you can get" after the Tennessee case was
detected, Chief Executive Marcus Rust said. Trucks must wait 72
hours to enter the company's property if they come from an area with
avian flu, up from 24 hours, he said.
(Reporting by Tom Polansek; Editing by Cynthia Osterman)
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