Sharp drop in poultry exports due to bird flu, stronger dollar

U.S. poultry exports will fall by 8.5 percent this year under the pressure of avian influenza and the stronger dollar, says the Livestock, Dairy and Poultry Outlook. Two major importers of U.S. poultry meat, China and South Korea, have restricted shipments as a precaution against spread of bird flu. The two Asian countries bought 5.5 percent of U.S. poultry exports last year. Their bans reduced U.S. sales by 25.5 million pounds in February, when bird flu was not as widespread as now.

“The dollar’s high exchange rate is expected to make it more difficult to compete with other exporters and has contributed to lower substitution to other markets than was expected following HPAI-related bans on U.S. poultry exports,” said the USDA, referring to highly pathogenic avian influenza.

Poultry exports are forecast for 7.5 billion pounds this year, compared to 8.2 billion pounds in 2014, a drop of 8.5 percent for broilers and 10.5 percent for turkey meat. The ongoing ban by Russia on food imports from many Western nations contributed to the dimmer outlook. More than 18 percent of U.S. poultry is exported in most years. The USDA’s current forecast is 16 percent.

Five additional cases of bird flu among turkey flocks were confirmed by the USDA, four in Roseau, Kandiyiohi, Stearns and Otter Tail counties in Minnesota, and one in Roberts County in South Dakota. Since Jan. 1, there have been 49 outbreaks of highly pathogenic avian influenza in commercial poultry flocks, 26 of them in Minnesota, the No. 1 turkey-producing state. There have been 32 cases this month.

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