Bans on US poultry shipments persist even as bird flu cases subside
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[July 27, 2023]
By Tom Polansek
CHICAGO (Reuters) - U.S. poultry producers say they face prolonged
economic pain from avian flu despite going months without infections in
flocks, as China and some smaller importers fail to lift trade bans
implemented during the nation's worst-ever outbreak of the virus.
The lingering bans, imposed last year to prevent the spread of the
disease, constrain the $6 billion U.S. export market for poultry meat as
producers also grapple with limited labor, lower chicken prices and
uncertain costs for feed.
The Chinese market is particularly important for U.S. companies like
Pilgrim's Pride because it is the primary destination for items like
chicken feet that Americans generally do not eat, industry officials
said.
China, South Africa and the Dominican Republic each maintain bans on
poultry from 37 states that previously reported infections, U.S.
Department of Agriculture (USDA) records show.
Mexico, the top overall market for American poultry meat, has largely
lifted trade bans, though shipments from Colorado, Washington state and
counties in a few other states are blocked, records show.
China's failure to lift bans 90 days after states eliminate avian flu
from farms violates the Phase 1 trade agreement signed with former
President Donald Trump in 2020, industry officials said.
The U.S. Trade Representative's (USTR) office declined to comment and
China's General Administration of Customs did not respond to a request
for comment.
The USDA had no updated comment. It said last year it was committed to
ensuring restrictions are in line with international agreements and
lifted as quickly as possible.
Wayne-Sanderson Farms, the third-largest U.S. poultry producer, told
Reuters many of its facilities are in states that should have been
reapproved for exports months ago.
"China continues to be less than forthcoming when it comes to state
reapprovals," the company said. "We have opportunity losses that are in
the millions of dollars between white meat, dark meat and paws."
U.S. exports of chicken feet, or paws, to China are down 27% by volume
through May, after rising in 2022, USDA data show.
Chicken producers Perdue Farms, Tyson Foods and Pilgrim's Pride, which
is mostly owned by JBS SA, have also highlighted trade restrictions.
Tyson reports quarterly earnings Aug. 7.
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"Several key countries have not yet
returned to normal patterns of business with the United States,"
Perdue said in a statement to Reuters. "We are eager for our
industry's long-standing business relationships to resume."
Avian flu has disrupted trade globally as the virus
spread. Japan this summer suspended poultry purchases from two
states in Brazil, the world's largest chicken exporter, after cases
in backyard animals.
Under guidelines from the World Organization for Animal Health,
regional or national trade bans are applicable if the highly lethal
virus infects a commercial farm.
United Nations agencies have said global outbreaks in poultry raise
concerns the virus might adapt to infect humans more easily.
NEARLY $1 BLN EXPORT HIT
The U.S. outbreak began last year and has wiped out nearly 59
million chickens, turkeys and other birds. The last infection in a
commercial flock was in April, though, and some states facing export
restrictions have not detected commercial cases since 2022, USDA
data show.
Export losses from the outbreak total $895 million, the USA Poultry
and Egg Export Council said on Tuesday. That is down from $1.3
billion for the previous record outbreak in 2015, after the U.S.
convinced trading partners to narrow trade restrictions.
The council, an industry group, said USDA sent China reports
requesting it end restrictions on 14 states, including major
producers North Carolina and Arkansas.
"They haven't budged on it," said Greg Tyler, council president.
In a March report, the USTR said the government submitted reports to
China for states deemed to be free of avian flu. The Phase 1 trade
pact requires China to resume imports within five days of receiving
the information, the report said.
U.S. industry officials suspect China's delay is political amid
heightened tensions with Washington.
States saddled with trade bans, including Texas and Maryland, said
they sought information from USDA.
"We're certainly concerned about not being able to export our
products when we know we've got a good clean product," Texas
Agriculture Commissioner Sid Miller said in an interview.
(Reporting by Tom Polansek in Chicago. Additional reporting by
Dominique Patton in Beijing; Editing by Caroline Stauffer and
Marguerita Choy)
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