Dive Brief:
- Several countries in Asia have banned poultry products from the U.S. after the presence of highly pathogenic H7 avian influenza was confirmed on a commercial poultry farm in Tennessee, according to Meat + Poultry.
- South Korea, Taiwan, Japan and Hong Kong have all imposed restrictions. There is no timetable for when they will be lifted.
- The Agriculture Department's Animal and Plant Health Inspection Service confirmed the discovery of the dangerous strain at the Tennessee poultry farm on March 5. The undisclosed farm is a supplier to meat and poultry giant Tyson Foods.
Dive Insight:
Avian influenza is a widespread problem worldwide that chicken producers and egg farmers factor into their operations. For many operations, an outbreak can be devastating as countries close their borders to imports from the infected country. With South Korea, Taiwan, Japan and Hong Kong imposing some type of restriction on U.S. poultry following the finding in Tennessee, companies such as Tyson Foods and Pilgrim's Pride could have less opportunity to sell their birds overseas.
Two years ago, fear over the similarly H5N2 avian influenza wound up costing American egg farmers more than $1 billion in losses over a six-month period. In that incident, more than 50 million hens were destroyed, the majority of them egg-laying hens. China, Mexico, South Korea and Canada all imposed some type of restriction — from an all-out ban on poultry and poultry products from the U.S. to just states where the virus was found.
While bird flu usually isn't prevalent in the U.S., the industry has already seen what one major outbreak can do. Prices for egg and egg products soared with less of the commodity available. Food companies such as Hormel Foods and Post Holdings also had their operations affected by the virus.
Since the major outbreak in 2014 and 2015, poultry companies, state and federal officials, and farmers have improved security measures in their operations. The Agriculture Department has worked on developing vaccines in case of another outbreak. And the US Poultry & Egg Association issued new guidelines for the industry to help producers better plan and prepare for their response to emergencies.
If this incident in Tennessee becomes a more widespread problem, prices for egg and egg products could surge. One positive is that temperatures are warming as spring approaches. Avian influenza thrives under cool and damp conditions. That would be good news for major poultry and egg suppliers still hurting from the last major outbreak, and hoping the latest discovery in Tennessee doesn't become more widespread.