Bans on US poultry shipments persist even as bird flu cases subside

Pilgrims Pride

27/07/2023 11:00

By Tom Polansek
       CHICAGO, July 27 (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  PPC.O  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  TSN.N  and
Pilgrim's Pride, which is mostly owned by JBS SA  JBSS3.SA ,
have also highlighted trade restrictions. Tyson reports
quarterly earnings Aug. 7.
    "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.

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Bird flu spreads on U.S. poultry farms    https://www.reuters.com/world/us/bird-flu-spreads-us-poultry-farms-2022-03-07/
Bird flu spreads to new countries, threatens non-stop 'war' on
poultry    https://www.reuters.com/world/bird-flu-spreads-new-countries-threatens-non-stop-war-poultry-2023-02-15/
Bird flu alarm drives world towards once-shunned vaccines    https://www.reuters.com/business/healthcare-pharmaceuticals/bird-flu-alarm-drives-world-towards-once-shunned-vaccines-2023-02-17/
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Tom Polansek in Chicago. Additional reporting by
Dominique Patton in Beijing; Editing by Caroline Stauffer and
Marguerita Choy)
 ((Thomas.Polansek@thomsonreuters.com))