In the last year, the United States poultry industry has been dealing with much more than chickens and eggs. The nation’s poultry purveyors have found themselves at the center of geopolitical controversies, global public health disputes, and cases decided by the World Trade Organization. Industry groups have even weighed in on Trade Promotion Authority and President Obama’s initiative to open trade with Cuba. (See related article)
Despite a ban by Russia of U.S. poultry exports last summer, 2014 set a new record for export quantity and came in second best for export value. U.S. poultry exports reached 4.1 million metric tons in 2014, 0.4 percent ahead of 2013, while value fell 0.3 percent to $5.501 billion. 2014 was also a record year for U.S. egg exports. Exports of eggs and processed egg products increased by one percent to 352.7 million dozen, while their value inched up 0.4 percent to $336.75 million. On the down side, U.S. broiler meat exports dipped by 0.6 percent last year to 3.3 million tons, while value fell by 4 percent to $4.063 billion. Top markets last year included Mexico, Angola, Canada, Cuba, Iraq, China, Taiwan, Hong Kong, and Georgia. Exports to Russia, still the fourth largest export market last year, were down 48 percent to 143,942 tons, thanks to the embargo. U.S. turkey export quantity in 2014 was the second-highest ever, rising by 6 percent to 364,915 tons, while export value was up 11 percent to $766.8 million. The top five markets for US turkey—Mexico, China, Canada, Benin, and Hong Kong—captured 77 percent of total export shipments in 2014, with Mexico alone accounting for 63 percent. Egg exports in 2014 were 196.9 million dozen valued at $198.39 million, up 5 and 8 percent, respectively, thanks largely to increased shipments to Canada, which grew by 103 percent to 79.8 million dozen. Other key markets were Hong Kong, Mexico, the European Union, and Trinidad and Tobago. The top five markets accounted for 92 percent of the total table egg shipments last year. In August, Russian President Vladimir Putin signed a decree to establish restrictions on imports of agricultural products from countries, including the U.S., that imposed economic sanctions on Russia as a result of the situation in Ukraine. In 2013, Russia was the second-leading market for U.S. chicken, in terms of volume, at 267,000 metric tons. However, noted Jim Sumner, president of the USA Poultry & Egg Export Council (USAPEEC), an industry group, the Russian domestic poultry industry has expanded in recent years and Russia has become less important as an export market. “Russia accounts for only about 7 percent of total U.S. poultry export volume,” said Sumner. “In the mid-1990s, exports to Russia were as much as 40 percent of that total. As a result, we do not expect that a Russian ban on U.S. poultry imports will have a great impact on our industry.” The poultry industry’s record year in 2014 demonstrates how it industry has become much more diversified. “We are no longer dependent on one or two export markets,” said Sumner. “Only a few years ago, losing a market like Russia would have been devastating. Now, it barely caused a ripple.” In January, the Chinese government announced that it will ban all imports of U.S. poultry and egg products because of detections in December of avian influenza (HPAI) in backyard poultry and wild birds in the Pacific Northwest. U.S. poultry exports to China reached nearly $300 million last year. Between December 24 and early January, some thirty countries, including Mexico, Canada, Japan, and Peru, placed bans or other restrictions on the importation of U.S. poultry originating in Oregon and Washington. China took the step of banning all imports, despite receiving assurance from the U.S. Department of Agriculture that the influenza virus has not been found in any commercial poultry flock in the U.S. “For China to impose a nationwide ban in response to isolated incidents of HPAI goes against international guidelines established by the World Organization for Animal Health,” said Sumner. Terrestrial Animal Health Code recommends that countries adopt a regionalized approach to HPAI incidents to minimize the impact on trade. These isolated and remote incidents are hundreds if not thousands of miles away from major poultry and egg production areas. Most all of our other trading partners have limited their restrictions to the state or, in some cases, to the county. We would have expected China to do the same.” China’s nationwide restrictions could also have a negative impact on its domestic poultry industry, according to Sumner. “Since the ban also includes U.S. breeding stock,” China is cutting off its industry’s main source of hatching eggs and chicks, which will curtail the industry’s ability to replenish and maintain its production.” Meanwhile, late last year, the World Trade Organization ruled against a ban by India of U.S. poultry imports. India placed the ban in 2007, claiming that as its purpose the prevention of low pathogenic avian influenza (LPAI). The WTO ruled against India on the grounds that it lacked any scientific evidence to support the ban’s validity. “India’s ban was thinly veiled protectionism,” said Sumner. “This ruling should send a signal to India and other countries that have placed similar bans on U.S. poultry that they are inconsistent with WTO rules and with guidelines established by the World Organization for Animal Health.” The WTO ruling does not give the U.S. automatic access to India’s market, which is estimated to be approximately 2.6 million metric tons of U.S. poultry annually, and is growing at a rate of eight to 10 percent per year. “We recognize that work remains to open India’s market,” said Sumner. “But this ruling is an important step toward securing that objective.”