Poultry exports down 8.5 percent in first quarter

Exports of U.S. poultry in the first quarter fell 8.5 percent in quantity and 9.9 percent in value compared with one year ago, according to the Foreign Agricultural Service.
Combined poultry exports for the quarter were 912,697 metric tons, valued at $1.149 billion.
Total exports of table eggs and egg products measured in shell egg-equivalent units were up 7.4 percent to 82.66 million dozen. Value increased 17 percent to $88.31 million.
Monthly broiler exports, excluding paws, in March were down 4.1 percent to 273,558 tons, and value was down 11.2 percent to $301.7 million from one year ago.
Shipments to Angola, Ghana, Azerbaijan and Georgia decreased, but shipments to Mexico, Taiwan, Hong Kong, Canada, Vietnam, Kazakhstan, Haiti and Guatemala were up.
Compared with one year ago, broiler exports were down 11 percent to 738,741 tons; value was down 13.1 percent to $851.3 million.
Turkey exports in March were down 11 percent to 24,851 tons; value was down 9.8 percent to $51.3 million. Turkey exports in the first quarter were down 5.8 percent to 69,837 tons; value was down 5.5 percent to $145.9 million.
Exports of table eggs in March were up 35.1 percent to 16.3 million dozen; value was up 58.4 percent to $21.16 million. Cumulative first quarter table egg exports were up 31.7 percent to 45.88 million dozen, with value up by 40.2 percent to $52.18 million.
March export value of egg products was up 6 percent to $13.06 million. First-quarter exports of egg products were down 5.6 percent to $36.12 million.

Kentucky sees slight broiler production decline in 2012

Kentucky's broiler production in 2012 has declined from 2011's record numbers due to feed costs, but poultry exports hit a record high and accounted for more than 19 percent of production, according to the state's agricultural cash receipts for January through September.
Higher prices in 2012 have partially offset the increased feed costs, reducing the impact on overall production levels, said reports. The U.S. Department of Agriculture has predicted that poultry exports will remain at high levels, leaving less than 80 pounds of chicken per person on the domestic market, which is the lowest level in 10 years. UK agricultural economist Lee Meyer said he believes poultry prices are likely to rise five to 10 percent in 2013.
Kentucky's overall agricultural cash receipts for January through September totaled $3.6 billion, 10 percent higher than 2011’s record level for the same period, according to the USDA. Despite the U.S. drought over the summer and high feed costs, agricultural economists with the University of Kentucky College of Agriculture said they foresee 2012’s cash receipts in the state will total $5.3 billion. Net farm income is expected to fall around the high end of $1 billion to $1.5 billion.

US poultry industry supports Mexico in Trans-Pacific Trade Partnership

The National Chicken Council and the USA Poultry & Egg Export Council have expressed their support for Mexico's inclusion in the Trans-Pacific Partnership Agreement, in response to the U.S. International Trade Commission’s request for comments and investigation on negotiating objectives with respect to the country's participation.
“Mexico’s membership is unconditionally supported by our industry and we view its inclusion as an opportunity to demonstrate improved relations by our government agencies and, thusly, both of our industries,” said National Chicken Council President Mike Brown and export council President Jim Sumner.

Mexico, which was not originally included in current negotiations, now joins Australia, Brunei Darussalam, Canada, Chile, Malaysia, New Zealand, Peru, Singapore and Vietnam. The U.S. Trade Representative has asked the International Trade Commission to provide advice concerning the probable economic effect of a U.S. free trade agreement with the countries. Brown and Sumner said Mexico’s participation does not offer anything in terms of tariff reductions since the two countries have long eliminated duties on poultry products. What it does offer, they said, “is an opportunity for the two governments to negotiate on the two issues that remain thorns in the side of liberalized trade in poultry: lack of productive movement on sanitary and phytosanitary issues and the use of bogus antidumping cases to hinder trade.”
Two negotiating objectives for Mexico’s inclusion in the Trans-Pacific Partnership were also suggested:

• The negotiation of a specific and mutually agreed work-plan and timetable for recognition of Exotic Newcastle Disease-free areas in Mexico, and for recognition of equivalency of the Mexican poultry inspection systems, with a view toward establishing an acceptable level of two-way trade as soon as possible, consistent with public and animal health protection.
• The negotiation of a “peace clause” that would prevent either country from bringing antidumping cases, or imposing antidumping duties, on the other’s poultry products.

US broiler meat, turkey exports up in February

U.S. broiler shipments were up from 514 million pounds in February 2011 to 636 million pounds in February 2012, a 24 percent increase, according to the U.S. Department of Agriculture's latest report.
This increase was primarily due to strong demand for U.S. broiler meat in spite of relative high broiler leg-quarter prices, said the USDA. In February, broiler leg-quarter prices were up 41 percent from February 2011. Although on average broiler leg-quarter prices are higher than they were in 2011, shipments to Mexico, Canada, Cuba, Russia, Angola and United Arab Emirates are all up from last February. Of the six markets, shipments to Mexico far exceed volumes shipped to other markets.
Turkey shipments also rose in February, up 17 percent from the same time in 2011. A total of 62 million pounds of turkey meat were shipped in February, almost 9 million pounds more than the volume shipped in 2011. Mexico received 36.5 million pounds of turkey meat from the U.S., which accounted for over 59 percent of total U.S. turkey shipments in February. Turkey shipments to Canada and Hong Kong also were up from 2011 numbers, according to the USDA. In February, the U.S. shipped 2.5 million pounds of turkey meat to Canada and 2.2 million pounds to Hong Kong, a 153 percent and a 44 percent increase, respectively, from 2011.
For more information and statistics on U.S. poultry, see www.wattagnet.com/marketdata.html.  

Tyson CEO: ‘Believe the Russians, diversify’ on chicken self-sufficiency

The industry should believe the Russians' desire for poultry self-sufficiency, said Donnie Smith, Tyson Foods president and CEO.

The CEO of the largest U.S. chicken company challenged his industry to stop depending so heavily on Russia as a market for chicken leg quarters and pick up the pace in diversifying markets and products for chicken dark meat.
Tyson Foods president and CEO Donnie Smith said, “I think the lesson we need to learn, as an industry, is to start believing the Russians when they say they want to be self-sufficient in poultry.”
He was responding to a question about what lessons the U.S. chicken industry should learn from a stoppage of U.S. chicken exports to Russia during the first nine months of 2010.
International and domestic diversification needed 
Smith said the U.S. chicken industry made progress recently in diversifying its customer mix around the world but needs more diversification internationally and domestically.
“We’ve been talking about and doing that diversification for years, and we had better listen to ourselves and continue to get that done,” he said.
“Three years ago, the U.S. chicken quota for chicken exports to Russia was around 900 million metric tons, and we’re looking at 450 million metric tons now,” he said.
Listen online 
Hear a podcast of Smith’s comments and those of four other poultry industry executives in a question-and-answer session, which occurred at the National Chicken Council (NCC) annual meeting in Washington, D.C. The podcast is accessible online.
Also participating in the panel were Don Jackson, CEO, Pilgrim’s Pride Corporation; Mike Roberts, president, food products business, Perdue Farms; and Bill Lovette, president and COO, Case Foods.
The panelists discussed industry opportunities and challenges ranging from industry profitability and consolidation to proposed regulation under the Grain Inspection, Packers and Stockyards Administration (GIPSA).
Video interviews with panelists Don Jackson, Mike Roberts and Bill Lovette can also be viewed online.

Putin: Russia to become self-sufficient chicken producer

Russian Prime Minister Vladimir Putin said at a press conference that he expects his country to produce enough chicken for domestic needs and become a poultry exporter in four to five years.
Currently, Russia produces about 1.7 million tons of chicken per year, about 50% of the total domestic requirement. Putin’s remarks are in light of his country’s new ban on imports of chicken treated with chlorinated water, which would end U.S. poultry exports to the country.

Japan halts Texas poultry imports

Japan is not allowing imports of Texas poultry and eggs to enter the country because of concerns about avian flu in the state, according to reports.
Birds slaughtered in Texas from December 1, 2009, forward are not allowed into Japan, according to the USDA.
Pennsylvania, Minnesota and Illinois poultry imports previously were banned by the country.

Russia, US to solve dispute over poultry imports

Russia and the United States will hold talks on January 17 in Moscow to solve a dispute over U.S. poultry imports, a top Russian official said on Sunday, according to Reuters.
Russia blocked U.S. poultry imports beginning January 1 with a law prohibiting chlorine as an anti-microbial treatment in poultry production.
Russia's chief sanitary official Gennady Onishchenko reportedly said that he hoped a compromise would be found at talks in Moscow, which he agreed to hold after telephone talks with James Miller, the USDA's undersecretary for Farm and Foreign Agricultural Services.
The United States supplies more than one-sixth of Russian poultry consumption, or 600,000 metric tons, Onishchenko said, adding that Washington knew about Russian plans to proceed with new regulations since 1994.
The January 17 talks will involve shipments of U.S. poultry, which is already en route to Russian ports on the Baltic Sea. U.S. officials have said there might be some 30,000 metric tons of poultry already en route to Russia.

Tension with China has the state of Georgia concerned about its poultry industry

Trade tensions with China have Georgia state officials watching their largest industry, poultry, according to reports.
The U.S. government recently announced it will impose duties on Chinese tires, which it believes are being unfairly subsidized by the Chinese government. In a retaliatory move, China is examining whether the U.S. exports of poultry and auto parts are benefiting from unlawful subsidies.

China launches anti-dumping probe into US chicken

China is launching anti-dumping and anti-subsidies investigations into American exports of automotive products and chicken meat, China's Ministry of Commerce announced on September 13.
The Chinese government said the above investigations are being held to answer early complaints from domestic poultry producers.

WTO to investigate US/China poultry import ban

The World Trade Organization will establish an expert panel to look into whether a U.S. ban on the import of Chinese poultry violates international trade laws, as alleged by China, farmfutures.com reported.
The decision follows a meeting of the WTO's dispute settlement body after China filed a request the second time.
U.S. meat companies support lifting the ban as they fear China might retaliate by banning U.S. imports. Trade groups said Chinese importers had already begun blocking shipments of U.S. chicken.
A statement posted on the Internet by the office of the U.S. Trade Representative's says: "We do not agree with China's assertions that the issue amounts to a discriminatory or protectionist measure.
"As we have stated, nothing in the measure identified by China prevents the relevant U.S. authorities from continuing to work together to reach an objective, science-based response to China's request for a declaration of equivalence with respect to poultry products."

US, Russia hold talks to ease trade restrictions

As a first step toward persuading U.S. Congress to repeal the controversial Jackson-Vanik amendment, Russia must lift bans on poultry and pork imports from the U.S., Commerce Secretary Gary Locke was quoted in The Washington Post.
Locke's remarks came after two days of discussions with Russian officials during President Obama's visit to Moscow. The 1974 Jackson-Vanik amendment prohibits trade relations with communist countries that restrict emigration.
However, Tom Malinowski, Washington advocacy director for Human Rights Watch, said Russian trade concessions alone will not persuade Congress to repeal the amendment as it sees Jackson–Vanik as a tool for expressing disapproval of human rights abuses in the former Soviet nation.

China's rumored poultry ban denied

USA Poultry & Egg Export Council's Toby Moore said they have word that the Chinese Ministry of Commerce has asked importers to reduce the number of permits they issue by 70%, adding he had few other details.
Following the report, Chinese Minister Chen Jian was reported as saying the country's imports "are normal with orderly and stable prices."
Mike Giles of the Georgia Poultry Federation said he hopes the rumors aren't true and that the industry has suffered enough due to last year's sharply increased feed grain prices.
Last year, Chinese imports of U.S. poultry totaled $722 million.

China to ban import of U.S. chicken

China is considering a ban on the import of U.S. chicken, a move that may adversely affect the American chicken industry and increase trade tensions between the two nations, the Wall Street Journal reported.
China's stance, which could see U.S. chicken exporters lose about $370 million over the next six months, follows a U.S. embargo on Chinese poultry. China branded the prohibition unlawful and had placed it before a World Trade Organization expert panel for investigation.
President of the USA Poultry & Egg Export Council James H. Sumner, reportedly acknowledged that several importers in China told him that the U.S. wouldn't receive any import permits from the country's ministry of commerce starting July 1.
"We have gone to great lengths over the past few years to explain to the Chinese that we are not behind this effort and that in fact we are opposed to any restrictive language," said Sumner. "We think the decision should be based on sound science, but apparently we have not convinced everyone because now we are falling victim to their actions."
The U.S. Embassy in Beijing, has reportedly been informed of the development. Last year China overtook Russia as the largest importer for U.S. chicken, according to the USAPEEC.

China challenges US ban on poultry

China has contested a US ban on the import of Chinese poultry in a case filed with the World Trade Organization.

Beijing also said Washington is breaking global commerce rules in stopping Chinese chicken parts from entering the US, according to an Associated Press report.

The bird flu outbreak of 2004 saw both nations bar the import of the other’s poultry. China lifted the embargo a few months later.

Since 2004, more than 4 million tons of US poultry have made their way to China -- most being parts, such as chicken feet, favorable only in China.

Virginia poultry exports increase

According to area farm officials, valley poultry is key to Virginia agriculture exports remaining strong, a Daily News Record story reports.
The state of Virginia exported $2.22 billion worth of agricultural products in 2008, a 27% increase from 2007's $1.74 billion, according to the Virginia Department of Agriculture and Consumer Services.
Tom Stanley, extension agent for farm business management in the central Shenandoah Valley, credits part of that trend to trust in the USDA.
The U.S. food safety system is "highly regarded and widely trusted. The USDA-inspected seal is the gold standard around the world," Stanley said.
The U.S. was the world leader in poultry exports last year, with more than 41% of shipments of poultry abroad. Brazil, the second-leading supplier of poultry, had 38% of the market, according to the USDA.

U.S. poultry, egg exports set all-time record in 2008

The total export value of U.S. poultry meat, table eggs and processed egg products set an all-time record last year, reaching $4.7 billion, 25% above 2007.
This makes the second consecutive year of record exports for the U.S. In 2007, poultry and egg exports increased by 41% over 2006. Also, for the first time, exports of all poultry and egg products in 2008 passed the $5 billion milestone. The total, which reached $5.05 billion, up 24% over the previous year, includes non-food items such as live breeding stock, hatching eggs and feathers and down, according to trade data compiled by the USDA’s Foreign Agricultural Service.
Broiler meat exports (excluding chicken paws) for 2008 set a new record in both quantity and value. Export quantity reached 3.2 million metric tons, up 18% over 2007, while export value reached $3.5 billion, $777 million or 28% ahead of the previous year, said Dr. Renan Zhuang, director of economic analysis at the USA Poultry & Egg Export Council (USAPEEC).
U.S. turkey meat exports also established records in both volume and value in 2008. Total turkey meat exports last year reached 306,787 tons, up 24% from 2007, in large part because of increased import demand by Mexico and China.
Export value in 2008 soared to $481.9 million, an increase of 21% from previous year, said Zhuang, who analyzes U.S. industry data for USAPEEC.
Broiler exports less concentrated for U.S. broilers, exports have become increasingly less concentrated, said Zhuang. Volume to the top three markets last year – Russia, China, and Mexico – totaled 1,464,625 tons.
The combined share of broiler exports to the Big Three was 46% in 2008, compared to 52% a year earlier. While export volume to Russia for the year decreased by 4%, volume to China and Mexico increased by 12% and 27%, respectively. Zhuang said that monthly U.S. broiler meat shipments to all destinations in 2008 increased year-on-year over 2007 in every month but November.
Total broiler meat exports for the first half of 2008 were 1.5 million tons, up 20% year on year. Exports for the second half of 2008 were 1.7 million tons, a year-on-year increase of 16% and an increase of 11% from the first half of 2008.Also, broiler meat export prices in the second half of 2008 increased about 6% from the first half of 2008, even as the world economy entered into a severe economic downturn, Zhuang said.
For chicken paws, U.S. exports in 2008 reached 508,735 tons, an increase of 19% from 2007. Export value reached $339.5 million, an increase of $68.1 million or 25% over the previous year. Of the total, 83% of U.S. paws exported were shipped to China, while 15% were shipped to Hong Kong. That is, about 81% of the chicken paws produced in the U.S. were harvested for export to China in 2008, Zhuang said.
The increase in paw exports to China is partially because of the relatively lower export prices. While the average export price (unit value) for chicken paws in China increased by 6%, the export price for other broiler meat products exported to China increased by 11%.
Exports of turkey meat to Mexico, the top market for U.S. turkey, reached 162,545 tons, an increase of 19% from the previous year. Meanwhile, U.S. turkey exports to China, the second-leading destination, reached 38,838 tons, an increase of 78% from 2007. Exports to Russia, the third-leading market, were 11,819 tons, down 15% from a year earlier. Turkey exports to other markets such as Hong Kong, Taiwan, Singapore, Dominican Republic, and Haiti also increased significantly.
Value of table eggs, processed egg products up slightly although the combined export value of U.S. table eggs and processed egg products in 2008 set a new record of $142.2 million, up 3% from the previous year, export volume of table eggs, declined by 27%, to 57.5 million dozen.
Export value of table eggs dipped from $63.4 million in 2007 to $50.81 million in 2008, down 20%. Even though table egg exports to Canada increased by 42% from 2007, exports to many other important markets, such as Hong Kong, decreased significantly. For egg products, 2008 export value reached $91.4 million, an increase of $17.2 million or 23% from the previous year. Exports to Japan, the top export market for U.S. egg products, increased significantly from $25.27 million in 2007 to $38.07 million in 2008, an increase of 51%.