Poultry Industry Pandemic Impact

[DB]

http://today.reuters.com/investing/financeArticle.aspx?type=hotStocksNews&storyID=2006-04-27T150723Z_01_N272044_RTRUKOC_0_US-FOOD-CHICKEN-STOCKS.xml

Chicken shares fall after Russia import ban
Thu Apr 27, 2006 11:07 AM ET

By Bob Burgdorfer
CHICAGO (Reuters) - Shares of leading U.S. poultry companies tumbled on Thursday after top importer Russia revoked import licenses for poultry, but U.S. chicken industry officials said the revocation may be temporary.
The United States exports about 15 percent of its chicken production and JP Morgan food analyst Pablo Zuanic said Russia takes about a third of that.

The import ban by Russia comes on top of the effects of bird flu crisis overseas on chicken exports.

Zuniac said in a statement that the combined effect of the Russia ban and the effect of bird flu on overseas poultry consumption "particularly if it is not short lived, should significantly hurt sentiment on chicken stocks."

"The Russia ban would imply a 5 percent drop in sales," said Zuanic. He said the bird flu crisis "has resulted in an average drop of about 12 percent in exports in the last eight months."

In New York Stock Exchange trading shares of Tyson Foods <TSN.N> were off about 3 percent at $13.99 after being down 10 percent earlier. Pilgrim's Pride Corp. <PPC.N> shares were off $1.52, or 5.67 percent, at $25.29.
In other trading Gold Kist Inc <GKIS.OQ>, shares were down 71 cents at $12.71 and Sanderson Farms Inc. <SAFM.O> shares were off $1.74 at $25.01.

The National Chicken Council said it will urge the U.S. Agriculture Department and the U.S. Trade Representative's office to protest Russia's action.

"Our hope is it is not a big deal," said Bill Roenigk, the council spokesman. "They have cut off all countries shipping poultry to them and they claim it is due to an alleged paperwork violation."

Russia's veterinary watchdog, Rosselkhoznadzor, said in a statement it had revoked all licenses for poultry meat and products from April 27. It said it would try to simplify the process of new license distribution.

"It is a technical issue, and I believe that it will be solved quickly -- within 10 days to two weeks," Interfax news agency quoted Agriculture Minister Alexei Gordeyev as saying.

The action follows recent comments by the Russian agriculture regarding his concerns about the large amount of poultry imports, said Roenigk.
"It may be an attempt to slowdown the amount of product going into his country from all countries," he said.

Also, Russia apparently has a lot of chicken in storage, said Paul Aho, an economist with the consulting firm Poultry Perspective.

"What's happening in Russia right now probably doesn't effect the amount of chicken they are going to import this year," said Aho. "This appears to be a temporary bureaucratic snafu."

U.S. chicken exports have been recovering after being hurt by falling consumption overseas due to consumer concerns over bird flu.

"We had good solid average months in January and February," said Roenigk of the chicken exports.

(Additional reporting by Aleksandras Budrys, Moscow)

 

[DB]

Re: Chicken shares fall after Russia import ban

Re: Chicken shares fall after Russia import ban

I didn't hear that they were recovering.

Sounds like more hope and less reality.

 

[Treyfish]

Re: Chicken shares fall after Russia import ban

Re: Chicken shares fall after Russia import ban

all liscenses for poultry and products.sounds like a chicken quarintine to me,mite be resolved in 10 to 2 weeks.we shall see.the start of a new trend?

 

[AlaskaDenise]

Poultry Industry Pandemic Impact

http://www.alertnet.org/thenews/newsdesk/L25276302.htm

25 Apr 2006 12:49:00 GMT, Source: Reuters

April 25 (Reuters) - The European Commission agreed on Tuesday to underwrite half of a bill likely to run into millions of euros to restore consumer confidence in poultry, given a hard knock by recent outbreaks of bird flu.


Poultry sales have stabilised in continental Europe as confidence has slowly returned but demand remains fragile.


Following are selected details on the size of the sector in Europe, its production and exports:


EUROPEAN UNION

Europe's poultry sector has a turnover of around 20 billion euros ($23.88 billion) a year.


EU-25 produces 11 million tonnes of poultry meat a year, with exports of one million tonnes.


Total number of poultry over 1.7 billion. Chickens account for 70 percent of production, turkeys 20 percent. Exports in 2004 worth 5.63 billion euros.


Main markets -- Russia, Saudi Arabia and Ukraine.


Average per capita consumption -- 22.88 kg.


Second largest meat sector after pork. Consumes 20 percent of EU cereal production.


Employs more than 500,000 people.


Imports some 350,000 tonnes of chicken breast fillets from Brazil. Feed cost of EU-produced chicken 0.90 euros, of Brazil-produced chicken 0.20.

The FAO has said it expected an 11 percent overall decline in European consumption this year.


MAIN EU PRODUCERS:


FRANCE


H5N1 confirmed on farm.


The sector was losing 40 million euros ($48 million) a month as countries around the world curbed imports. The government said up to 58 countries outside the EU had totally or partially blocked French poultry products. Some bans now lifted.


French poultry sector turnover of six billion euros a year.


Poultry meat production is 1.9 million tonnes, around half of which is chicken.


Total number of poultry 275 million, of which 215 million are chickens. Exports (both EU and non-EU) of around 740,000 tonnes are worth one billion euros, with 45 pct (350,000 tonnes) going to other EU countries.

Main export market Saudi Arabia, still open.


Egg production around 15 billion, worth one billion euros.


BRITAIN


H5N1 confirmed in wild swan.


Total poultry meat production is around 1.6 million tonnes and the UK also imports about 530,000 tonnes.


Total number of poultry 167 million, of which 157 million chickens. Exports of more than 275,000 tonnes last year were valued at 247 million pounds.

Domestic use is about 1.8 million tonnes.


Poultry slaughtering totals almost 900 million a year, the vast majority chickens.


Per capita consumption 28.5 kg.


Sales have held despite bird flu. Some 90 percent of poultry reared for meat is kept indoors.


GERMANY


H5N1 confirmed in farmed birds.


Poultry meat production 1.2 million tonnes.



Turnover 1.1 billion euros (2.0 billion including eggs).

Total number of poultry 122 million, of which 112 million chickens. Export business practically zero.


Per capita consumption 17.8 kg.


ITALY


H5N1 confirmed in wild birds.


Total poultry meat production around 1.1 million tonnes, of which chicken around 675,600 tonnes and turkey 300,000.


Number of poultry 126 million of which 100 million chickens.


Industry turnover was 3.5 billion euros in 2004, 6.5 percent of turnover in entire Italian farm sector last year.


Imports of 26,775 tonnes of chicken meat in 2004 and 30,917 tonnes of turkey meat (mostly from Brazil, France and Hungary).


Italy exported 63,273 tonnes of chicken meat and 62,480 tonnes of turkey meat.


To March, the Italian poultry sector had lost some 500,000 euros ($597,100) and laid off 30,000 workers due to a collapse in demand for chicken amid consumer fears over bird flu.


NETHERLANDS


Poultry meat production around 600,000 tonnes, with just over half exported. Fresh meat shipped mainly to Germany and the UK, frozen meat to Russia, Ukraine and Africa. Poultry industry exports, including meat, eggs and live birds, worth 1.6 billion euros a year.


Total number of poultry 90 million, mainly chicken.


Per capita consumption 21.9 kg.


Annual egg production at 9.2 billion, with 60 percent for export, mainly to Germany but also Belgium, Russia and UK and worth 400 million euros.


SPAIN


Poultry meat production 1.35 million tonnes, worth 1.67 billion euros. 1.05 million tonnes of chicken meat produced.


Total number of poultry 130 million, almost all chickens.


Per capita consumption 33 kg. Imports 150,000 tonnes of poultry, exports 85,000 tonnes.


Independent producers reported sales drop up to 50 percent.


HUNGARY


H5N1 confirmed in wild birds.


Annual exports 120,000 tonnes, of which 1,600 tonnes foie gras, mainly to France.


Total number of poultry 41 million, of which 33 million chickens.


Export markets for chicken: Germany, Switzerland, Austria and Italy; for turkey: UK, Netherlands, Switzerland, Italy, Austria, Germany; and for geese and ducks: Germany.


Sources: European Commission, FAO, national farm ministries and industry associations.

 

[Sally Furniss]

Poultry Industry Pandemic Impact

http://today.reuters.com/News/newsA...L21679853_RTRUKOC_0_US-BIRDFLU-EU-POULTRY.xml
BRUSSELS (Reuters) - EU poultry experts agreed criteria on Wednesday for using public cash to boost consumer confidence in poultry meat, where sales have taken a hard knock due to fears about bird flu, the European Commission said.

In April, the Commission agreed to underwrite half of a bill for EU governments to restore consumer confidence in poultry meat like chicken and turkey. That bill was now likely to reach between 50 million and 65 million euros ($63.15 - $82.09 million), it said.

The idea is for countries to submit national "poultry plans", if they want to, asking for grants of EU cash. A string of countries, 14 among the EU-25, have already done so.

The Commission, the EU's executive arm, will have to approve all measures put forward and has said repeatedly that requests should focus on ways for temporarily reducing production.

Measures deemed suitable for approval include destruction and processing of hatching eggs, destruction of chicks of species like chicken, guinea fowl, duck, turkey and goose, and early slaughter of some of the breeding flock, it said.

Some ideas are already ruled out, like aid for private storage of poultry meat or for destruction of existing stocks.

"The dramatic decline in poultry consumption and prices earlier this year was an extraordinary situation which required extraordinary measures," EU Agriculture Commissioner Mariann Fischer Boel said in a statement.

"I believe our proposals will give farmers the flexibility to adjust their production to the market situation without prolonging market imbalances unnecessarily," she said.

EU countries have seen poultry sales slump since late last year due to general fears about eating the meat, after numerous outbreaks of bird flu in both domestic and wild flocks.

Although stocks of poultry meat are still high across the EU-25, particularly in Germany, Italy and the Netherlands, many countries are now reporting slow improvements in consumption and retail prices, latest Commission figures show.

 

[Mellie]

India: Chicken prices go out of common man?s reach

India: Chicken prices go out of common man?s reach

http://www.dawn.com/2006/06/22/nat31.htm

Chicken prices go out of common man?s reach


<center> By Our Correspondent</center>
GUJRANWALA, June 21: Chicken rates have gone up significantly in the city, as elsewhere in the Punjab, during the last one month or so.

A survey carried out by Dawn reveals that the chicken is being sold at Rs135 per kilogram these days ? almost double the rates the shopkeepers were charging until a few weeks ago when the bird flu scare was at its peak.

The rates of chicken and other poultry products are expected to rise further, as the farm owners are claiming production shortage. Some farmers this correspondent talked to say most of over 3,000 poultry farms in the city were wound up after heavy losses in the wake of the bird flu scare.

A farmer says now the poultry industry is recovering and it will take another couple of months before the market situation improves.

The consumers, in the meantime, complain that the market and price-control committees have failed to deliver and must be stirred into action.

 

[osaggee]

Re: U.S. Poultry Industry Prepared says expert

Re: U.S. Poultry Industry Prepared says expert

Good article but I think the poultry industry is about as ready as a monkey driving a cadallic into dallas. Here in arkansas there are 13000 large poultry growout houses and during the year there are 54,000,000 deaths of chickens from diseases of what? The farmers use hispanic workers that speak very little english and only know to throw the dead chickens into a freezer outside of the growout houses. Crews that pickup the chickens go from one farm to another and they do not change clothes or clean their shoes before entering the houses. The arriving trucks for pickup normally wash down the cages and truck beds on the farm they are picking up from the waste from the last farm pickup and who knows whats in the poop! Even now the industry has stopped
their workers from coming on the farms to d the normal virus checking in fears the virus might be passed from farm to farm like a wild fire. Lets hope the article is right and I am wrong. Thanks for the good post.

 

[Bruce]

EU extends asian poultry ban for another year

EU extends asian poultry ban for another year

EU extends asian poultry ban for another year
Last Updated 05/07/2006, 03:37:28

The European Commission has strengthened measures to combat bird flu extending an import ban on live birds and movement restrictions on pet birds entering the EU.

A ban on the import of poultry products from China, Malaysia and Thailand will remain in place until the end of December 2007 due to the persistance of the disease.

An embargo on poultry meat exports from Turkey will also be extended until the end of this year.

Health experts fear the H5N1 strain of bird flu could mutate into a form that is transmitted more easily between humans.

http://www.radioaustralia.net.au/news/stories/s1678850.htm?Asia

 

[Lyro]

Poultry Industry Pandemic Impact

PAST BIRF FLU SCARE BRAZILIAN FIRM BACK
TO KILLING ONE MILLION CHICKENS A DAY
Written by Newsroom (Brazil Magazine)
July 12, 2006

The world president of the Doux Group, Charles Doux, and the director for institutional relations in Brazil, Aristides Vogt, announced Monday, July 10, that their poultry plant Frangosul will go back to slaughtering one million birds per day in Rio Grande do Sul, southernmost Brazilian state.

The company had reduced the number to 700 000 in March, when cases of avian influenza were registered in some countries. Currently 850 000 birds are being slaughtered per day. The information is from the local state government's spokesman.

The Doux Frangosul unit in Montenegro is the one that processes the largest number of chickens. The company also has another three production units in the Ga?cho cities of Passo Fundo and Caxias do Sul, and in the midwestern state of Mato Grosso do Sul.

The company has French capital and employs over 8 000 people. The animals are supplied by 3 500 families of small producers, generating over 15 000 indirect jobs, according to the Doux International Relations director, Aristide In?cio Vogt. Company technicians and vets accompany the raising of the animals.

Most of the company exports are whole chickens. They sell around 35,000 tons of chicken on the foreign market every month, and export to 90 countries, thus generating around 75% of company revenues.

Frangosul is the third largest company in Brazil in terms of chicken slaughter. The company capital was originally Brazilian, but it was bought by the French in 1988. In Europe, Doux is the largest chicken producer.

Source: http://www.brazzilmag.com/content/view/6848/53/

 

[Lyro]

Poultry Industry Pandemic Impact

EU BAN EXTENSION AFFECTS FRESH CHICKEN EXPORTS
July 12, 2006 (TNA)

Bangkok -- An extended ban on fresh poultry exports to the European Union (EU) is expected to hurt Thailand's fresh chicken export prospects this year, even as the Thai government is insisting that a bird flu outbreak in the kingdom is under control.

Referring to the EU extension of its ban on fresh chicken imports from Southeast Asian countries to the end of this year, Thailand's Livestock Development Department Director-General Yukol Limlamthong said Wednesday it was due to outbreaks of bird flu still existing in several ASEAN countries.

As for Thailand, which is included in the ban, he said, it did not mean the EU lacked trust in the efficacy of the country's systems of bird flu control.

The livestock development department had notified the EU that Thailand had efficient measures to control the virus, and that accordingly no bird flu outbreak has been reported here for over 200 days, longer than the 90 days standard set by the Office International des Epizooties(OIE).

The EU stated in response that its experts will visit Thailand for inspections, but the visit has yet to be scheduled, he said.

Mr. Yukol said the EU decision to postpone lifting its ban is expected to affect Thai fresh chicken exports, which this year were targeted at 50,000 tonnes valued at Bt4.5 billion (about US$118.8 billion).

However, he said, exports of Thai cooked chicken products are still expected to reach the target of 350,000 tonnes, though at mid-year only 130,000 tonnes had already been shipped.

As part of the joint effort to control bird flu, the livestock development department and 21 companies runing about 1,800 poultry farms on Thursday will sign an agreement to develop a zoning and compartment system for raising domestic poultry, one of the measures aimed to enable poultry to be disease-free, especially from avian flu, the director-general said.

The department plans to endorse a "compartment system" for poultry farms using the scheme later this year. If the Thai measures are endorsed by EU and Japanese experts, Thailand will be able to resume its exports of fresh chicken within 2007, he said.

Meanwhile, Agriculture and Cooperatives Minister Sudarat Keyuraphan said the EU's extended ban on fresh poultry product imports does not affect Thailand directly as it applies to the entire region.

However, the EU gave an opportunity for countries with high standards of hygiene to demonstrate they can contain bird flu outbreaks. Thailand has invited EU experts to inspect all procedures already implemented.

Source: http://etna.mcot.net/query.php?nid=23267

 

[KenCalif]

Re: Poultry Industry Pandemic Impact

If BF reaches US commercial poultry farms it may be devastating to the industry however it would bring back BF to the nightly news and get more people prepping.
I worked for the USDA as a ranch guard in 1971-72 when Newcastle disease was in SoCalif. Crews killed off 12 million birds in just a few counties. And it wasn't a danger to humans.
Ken

 

[Lyro]

Poultry Industry Pandemic Impact

According to this article, there is no apparent sign for the moment of devastation in the poultry industry: remaining strong in the U.S.

***

BIRD FLU FAILS TO HIT U.S. APPETITE
By Kara Rowland (The Washington Times)
July 14, 2006

The poultry industry says the U.S. demand for chicken has remained strong despite a lagging export market in countries where bird flu has been reported.

"No one that we've spoken to has reported any impact from avian influenza," said Richard Lobb, spokesman for the National Chicken Council, a Washington trade group. "The public is very well aware of bird flu but there's really been no measurable impact on demand for chicken in the United States."

Overseas exports, on the other hand, took a major hit in the fall as populations in Turkey, Romania, Ukraine and other countries with confirmed cases of bird flu became averse to chicken altogether, Mr. Lobb said.

"When the domestic market in a country like that is down sharply, you can't sell the local fresh product [and] it is very difficult to sell the imported frozen product -- consumers just shy away," he said.

In response to weak sales overseas, the country's No. 2 poultry producer, Pilgrim's Pride Inc. of Pittsburg, Texas, on Wednesday said it was cutting production at its Timberville, Va., plant by 10 percent this year "to better balance production with demand," spokesman Gary Rhodes said. The cutback is part of a plan to reduce overall production by 3 percent this year.

"The exports for much of this year have been very weak and at the same time, that has led to higher inventory levels and has contributed to lower overall prices for our products," Mr. Rhodes said.

For the most recent quarter ending April 2, the company posted a net loss of $32 million (48 cents per share), compared with earnings of $56.4 million (85 cents) the previous year.

In the United States, the oversupply of chicken caused prices for both breast and leg meat to fall 30 percent during the quarter.

In a letter to affected plant employees, Pilgrim's Pride said it hopes to return to normal operations by early next year.

The production cutbacks "are absolutely necessary in order for the company to return to profitability and ensure our long-term success -- and your job security," the company said.


Confidence in chicken processors' precautions cited
In a similar bid to return to profitability, Tyson Foods Inc., the country's top poultry producer, yesterday said it will lay off 420 employees and eliminate 430 positions that are not currently filled, at an estimated cost savings of about $200 million.

"We realize we can't save our way back to profitability," Chief Executive Officer Richard L. Bond said.

The Arkansas company posted a net loss of $127 million (37 cents) for its most recent quarter ending April 1, compared with a net income of $76 million (21 cents) a year ago.

Tyson, the world's biggest beef producer, attributed the plunge to mad-cow disease concerns as well as bird flu.

There may be a light at the end of the tunnel, however, as analysts speculate the European market is beginning to bounce back as there haven't been recent reports of additional bird-flu outbreaks on the Continent.

Despite setbacks early in the year, chicken exports are projected to be 5.5 billion pounds at the end of this year, up nearly 7 percent from last year, according to a June report put out by the USDA.

Diane Geissler, an analyst for Merrill Lynch, raised annual earnings guidance for both Tyson and Pilgrim's Pride in a July 6 note to clients, acknowledging that "component prices have improved" due to "improved export demand, seasonally stronger domestic demand as well as lower inventory levels and production cuts."

U.S. chicken restaurant chains say their customers have faith in the precautions taken by chicken processors, who have implemented numerous safeguards to prevent the transmission of avian flu by farm employees or migrant birds.

"We've been pretty much unchanged. We're actually having a very good year," Chick-fil-A Inc. spokesman Don Perry said.

"It's business as usual," said Alicia Thompson, spokeswoman for Popeye's Chicken and Biscuits. "I think at this point consumers are feeling fairly confident that there is no threat to the U.S. poultry supply chain."

Source

 

[Lyro]

Poultry Industry Pandemic Impact

EGYPT MOVES TO CUT FOOD PRICES IN RAMADAN RUN-UP
July 11, 2006 (AFP)

Cairo, Egypt -- Egypt eased restrictions on poultry imports imposed amid the bird flu crisis, among a raft of measures aimed at lowering the retail price of food ahead of the Muslim fasting month of Ramadan.

Photo: Egypt Foreign trade and industry minister Rashid Mohammed Rashid

"Whole frozen poultry, frozen eggs and egg powder will be off the list of banned imports," foreign trade and industry minister Rashid Mohammed Rashid told the official MENA news agency.

The retail price of meat and fish had doubled following the imposition of the import ban.

Rashid also announced that import duties on fish and frozen meats, including poultry, would be lifted from mid-July until December 31.

"These decisions are aimed at enabling the poultry industry to eventually be fully functional while providing citizens with their meat, fish and dairy needs at reasonable prices in the run-up to the month of Ramadan," said Rashid.

Ramadan, which this year begins in September, sees observant Muslims abstaining from food and drink from sunrise to sunset but traditionally the fast is broken over a large meal with family and friends.

As a result, more food is consumed during Ramadan than during any other month of the Muslim calendar.

Egypt has reported 14 cases of bird flu in humans, six of them fatal. The last death was reported in May.

Poultry features heavily in the Egyptian diet and supports a huge industry which employs around two million Egyptians.

Source

 

[Lyro]

Poultry Industry Pandemic Impact

CHICKEN SHORTAGE HITS KAMPALA
By James Odomel & Carol Natukunda
July 18, 2006 (The New Vision, Uganda's Leading Website)

Photo: Hard to find: Chicken being sold at Nakawa Market in Kampala

A Chicken shortage has hit Kampala following the November ban on importation of poultry products

The ban came after an outbreak of bird flu in different parts of the world.

A random survey by The New Vision yesterday showed there were fewer or no chicken in most of the major food outlets especially supermarkets.

Ugachick general manager Dr. Flavio Oliveira said, ?When the government banned the importation of parent broiler stocks, most of the poultry keepers abandoned the project. So when the the birds run out there was no replacement.?

Ugachick imports most of its parent stock from Holland and the UK.
Parent stocks are chicks reared to maturity for consumption and egg laying.

Oliveira said Ugachick?s previous supply of about 100,000 broilers per month to the major supermarkets had dropped to zero.

?We have not been supplying birds for the last two weeks. The problem is likely to persist for the next 10 days as our birds mature,? he said.

At Metro supermarket, Nakawa, no chicken was on display by 11:00am yesterday. ?I think people were really, really scared of buying poultry,? said an attendant.

?Some suppliers wanted to create a gap and take advantage of the bird flu scare. You find someone waiting to sell it at a much higher price,? an attendant at Shoprite Lugogo said, pointing at the 10 packs of chicken at 12:30pm yesterday.

A nutritionist at Mwanamugimu Nutrition Centre at Mulago Hospital said chicken was perfect choice for meals, as it is lower in fat than most other meats.

?Chicken is a significant source of daily requirements of protein, vitamin D, iron and zinc. There are few foods so naturally good for you as chicken,? the nutritionist who preferred anonymity said.

Source: www.newvision.co.ug/D/8/13/510030

 

[Lyro]

Poultry Industry Pandemic Impact

BIRD FLU FEARS THREATEN CHRISTMAS TURKEY SHORTAGE
By James Meikle (The Guardian)
July 20, 2006

Organic turkeys and geese might be in short supply this Christmas because farmers fear bird flu will return this autumn, it was claimed yesterday.

The organic sector's main research body said there was growing evidence producers had assumed the worst and chosen to abandon the business rather than risk ruin later.

The Elm Farm research centre in Newbury , Berkshire, which is campaigning for owners to be allowed to vaccinate their birds before flu arrives, said farmers did not want to invest in rearing birds only to find their outdoor production systems were forbidden or consumers scared off by further bird flu alarms.

Director Lawrence Woodward warned that shutting birds inside "signals the effective end of environmentally-friendly and sustainable poultry systems in the UK. It would be a catastrophe."

The task of rearing young birds for slaughter in early December should be well under way, supplying an increasingly popular seasonal niche market. Michael Turner, who used to raise 1,000 turkeys, 100 geese, 200 chickens and some ducks alongside his organic cattle and oats, wheat and barley, has given up on the poultry. "We thought there was too much at stake if there was an outbreak locally, perhaps in November. It could have serious implications for our Christmas sales," said Mr Turner, who farms at Great Brickhill, Buckinghamshire.

The government has promised birds will retain organic status as long as they do not have to remain under cover for more than three months. But David King, its chief scientist, has said free range and organic poultry farming could come to an end if the disease takes hold in wild birds.

Source

 

[Lyro]

Poultry Industry Pandemic Impact

IMPORTS TO THE RESCUE
By Mona El-Fiqi (Al-Ahram Weekly)
20-26 July 2006, Issue no. 804, Economy

Immediate measures to bring down the prices of chicken, meat and fish were met with relief by importers and consumers alike.

Photo: Mohammed Hosni Moubarak, December 8, 2003. Source

In an attempt to control food prices, the government announced this week that imports of frozen chicken, meat and fish are exempt from customs duties for the next six months. The new regulations also exempt milk, eggs and all imports required for local poultry industries from tariffs. Taking effect on 17 July, the decision was in response to President Hosni Mubarak's instruction to the government to make these products available at affordable prices for low income families.

The price of poultry, fish and meat soared last February when the bird flu virus spread among Egyptian poultry. In response, Minister of Foreign Trade and Industry Rachid Mohamed Rachid took decisions to meet rising demand on these products, and bridge the gap between local production and overall consumption.

Rachid announced at a news conference this week that frozen chicken imports will come from the USA, France and Brazil, where the poultry is not infected with avian flu. According to preliminary estimations, the market is in need of 450 million tonnes of imported chicken, meat and fish until the end of the year. The exemption period may be extended if prices are not brought under control, and as long as the balance between local demand and supply is still distorted.

Businessmen welcomed the decision, noting that the high tariffs imposed on frozen chicken imports since 2004, estimated at 32 per cent, resulted in a decline in imports and a peak in sales prices. "The new decree will encourage the import of chicken," predicted Mustafa Zaki, chairman of the Importers Division at the Egyptian Federation of Chambers of Commerce. A tonne of imported frozen chicken cost $1200, making the price of a kilo of chicken between LE12 to LE15, "but now it will go down to LE8 to LE10," explained Zaki.

The decision was also a relief for consumers who said the prices of chicken and meat had become unaffordable. Soha Mahmoud, a civil servant and mother of two, told Al-Ahram Weekly that the rise in the price of chicken adversely affected her household's budget. While they used to substitute meat -- selling at LE35 per kilo -- with chicken, it too had become unaffordable. "When the price of chicken shot up from LE6 to LE15 per kilo, it was too expensive for us," said Mahmoud. She added that as a consumer, she hoped that the new regulations will help control prices for the benefit of low income families.

According to official figures, daily consumption is estimated at two million chickens, while local production is estimated at a meagre one million chickens. But Zaki believes that local chicken production is no more than 20 per cent of total consumption.

Galal Abul-Fotouh, chairman of the Customs Authority, told all customs outlets to facilitate the procedure for importers and adhere to the new regulations until the end of December. Abul-Fotouh's instructions included that customs employees should permit the entrance of chicken and meat shipments immediately after health conditions are ascertained.

Meanwhile, the Central Bank of Egypt instructed commercial banks to provide financing facilities to importers of meat, fish and chicken to encourage them to import.

A committee, including representatives from the ministries of finance, trade and industry, agriculture, as well as consumer protection societies, will monitor the process to ensure the application of the new regulations. It will also work to guarantee the availability of these products at affordable prices during the next six months, according to Rachid.

At the same time, the committee will investigate market prices to expose unjustified price hikes or monopolies by merchants. Rachid asserted that the government would not hesitate to protect consumers by interfering immediately to control prices and prevent price manipulation.

Source: http://weekly.ahram.org.eg/2006/804/ec3.htm

 

[Lyro]

Poultry Industry Pandemic Impact

STEEP JUMP IN AUSTRALIAN MEAT IMPORTS INTO KINGDOM
By K.S. Ramkumar (Arab News)
August 4, 2006

Jeddah ? There has been a record increase in Australian sheep meat imports into Saudi Arabia and the rest of the Middle East.

Shipments to the region have been buoyant on the back of a range of factors, including great consumer confidence in Australian food safety systems and Halal procedures, increased regional wealth due to stronger oil revenues, reduced competition from other lamb exporters and a reduction in consumption of poultry due to consumer fears relating to bird flu, Ian Ross, regional manager of Meat and Livestock Australia (MLA), said yesterday.

MLA is responsible for the implementation of marketing and market support programs and for commissioning research and development for Australian meat and livestock throughout the world, said Ross who was here in the course of his visit to the Kingdom.

Asked whether there was a move on the part of the company to move its hub from Bahrain to elsewhere in the region, Ross said: ?Bahrain remains the hub for Australian meat exports because of its central location that allows easy access across the causeway to Saudi Arabia and the UAE, our two major markets in the region.?

Citing reasons for increased meat imports from Australia, Ross told Arab News that Australian processors who export to the Middle East met strict regulations on Shariah-compliant slaughter procedures set by Saudi Arabia and the rest of the GCC. ?These systems are audited by representatives from the GCC to ensure that Halal products exported to the region meet religious requirements,? he said, adding that these regulations are rigorously supported by Australian government legislation.

Employing the most advanced international technologies and stringent hygiene standards, Australia is a leading producer and exporter of red meat products with annual exports of 2.5 million ton meat products, including 910,000 ton beef and veal, 141,000 ton lamb and 141,000 ton mutton. In 2004-05, Australia exported more than three million sheep and 8,000 cattle to the Middle East.

Australian lamb exports to the Middle East during the 2005-06 financial year increased by 35 percent, to a record high of 16,177 tons, ?with Australia?s reputation for rigid food safety systems and reliable supply as key factors behind the increase,? he said.

Exports to the UAE accounted for more than half of all lamb shipments for the period. Exports to the UAE increased 40 percent on the previous year, to 9,016 tons.

Exports to Jordan increased significantly, up 183 percent, to 1,806 tons, while shipments to Saudi Arabia increased 6 percent, to 4,208 tons.

?Overall, the growth of Australian meat export continues into 2006 with beef, in particular, returning on a strength of reputation for food safety and rigid quarantine standards and the popularity of great tasting high value steak cuts in the five star food service sector,? Ross said and emphasized that integrity of Halal system (protected by Australian government legislation) had always been a strong influential factor as well. In June, sales hit 824 tons - 100 tons higher than the previous record.

?The quality of Australian lamb is recognized by supermarket and restaurant buyers. There?s a great response now to the flavor of Australian lamb, and also there?s a strong awareness of it,? he said. ?We?ve been doing all we can for some time to encourage the awareness of the safety systems and the traceability, the integrity of the Australian Halal system. I think there?s great confidence in Australian sheep meat products generally.?

MLA, a producer-owned company that provides services to livestock producers, processors, exporters, foodservice operators and retailers, has around 34,000 livestock producer ?members? who have stakeholder entitlements in the company.

?On behalf of the meat and livestock industry, we manage and operate a portfolio of marketing activities aimed at maintaining and increasing demand for Australian meat and livestock, both at home and overseas,? Ross said.

Source: www.arabnews.com/?page=6&section=0&article=78728&d=4&m=8&y=2006

 

[Lyro]

Poultry Industry Pandemic Impact

FIJI: LIVESTOCK PRODUCTION DECLINES: RATUVUKI
August 29, 2006 (Fiji Times on line)

THE Government is concerned about the agriculture industry's low contribution to the nation's Gross Domestic Product.

Agriculture ministry's chief executive officer Luke Ratuvuki made the comment at a livestock seminar held in Suva last week.

Agriculture used to be the backbone of the Fiji's economy before tourism developed as the country's biggest foreign exchange earner.

Speaking of the livestock sector, Mr Ratuvuki said the production trend of most livestocks had been declining in recent years.

This, he said, had resulted in high imports and an increase in prices at the local markets.

Mr Ratuvuki said this could only be overcome if emphasis is placed on meeting the demand for animal products at a highly competitive standard.

He said the livestock industry stakeholders should work out ways to effectively and efficiently utilise the opportunity that Fiji's livestock industry had.

He said Fiji had the advantage of a wealth of resources and an environment free from lethal livestock diseases such as mad cow and bird flu.

He said these were production factors that the industry stakeholders could take advantage of to make quantity and quality of their products readily available to consumers.

Source