Chicken Caucus: Promoting US poultry exports globally

Meet the Congressional Chicken Caucus: The group making sure that the poultry export market is fair and serving as the voice of the U.S. poultry industry on Capitol Hill and around the world.
The caucus, organized in the House of Representatives in 2011 and in the Senate in 2013, is a bi-partisan group of legislators representing chicken-producing states and districts around the country. Like other congressional caucuses, the group exists to help like-minded lawmakers communicate about issues facing the poultry industry and organize legislative actions to promote and protect the industry.
The Congressional Chicken Caucus, the 57-member group in the House, is currently lead by Rep. Steve Womack, R-Ark., and Rep. Jim Costa, D-Calif., who serve as the co-chairs. In the Senate, the 11-member Senate Chicken Caucus is lead by Sen. Johnny Isakson, R-Ga., and Sen. Chris Coons, D-Del. Together, the caucus includes representation from Arkansas, California, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, Missouri, North Carolina, Oklahoma , Pennsylvania, South Carolina, Texas, Tennessee and Wisconsin.
The group was organized, and continues to operate, with the help of the National Chicken Council (NCC). At October 2015’s Delmarva Poultry Industry Inc. National Meeting on Poultry Health, Processing and Live Production, the Washington, D.C.-based trade group’s president, Mike Brown, said the caucus helps the NCC keep key lawmakers informed about political issues affecting the poultry industry.
Brown said the caucus was instrumental in opening the door for the U.S. to export poultry to South Africa – the largest potential market for U.S. poultry in Africa – after being blocked from the nation since 2000. Tom Super, a spokesman for the council, said Isakson and Coons’ efforts helped the U.S. review its trade and foreign aid policies toward South Africa and put pressure on the nation to drop some of its restrictions on importing U.S poultry products.
“In June (2015), we were able to announce that the American and South African poultry industries reached an agreement to end South Africa’s duties on U.S. poultry, thanks to negotiations led by the United States Trade Representative, the Department of State, U.S. Ambassador to South Africa Patrick Gaspard and trade experts from industry. South Africa must now implement this agreement and end its separate, complete ban on U.S. poultry due to avian flu before U.S. product can enter the market,” Isakson said in a statement provided by his office. “In August (2015), the U.S. Trade Representative announced the start of the out-of-cycle review process to determine whether South Africa should remain eligible to benefit fully from the African Growth and Opportunity Act preference program in light of ongoing trade violations. I am extremely encouraged that the U.S. Trade Representative is taking enforcement of AGOA seriously by quickly conducting the required review of South Africa’s eligibility for benefits.”

Super said South Africa still has a few more steps to take, but the chicken caucus’ actions in Congress will likely allow the U.S. to export 65 metric tons annually, worth about $65 million, to the rainbow nation in the near future. The group is also pushing to ensure scientifically unfounded avian influenza-related bans on chicken imports are reversed to ensure the U.S. can continue to export about 20 percent of its poultry products around the world. Super said the caucus will continue to focus on international trade agreements, including the implementation of the Trans-Pacific Partnership trade agreement between the U.S. and Pacific rim nations, in the near future.
“(The caucus has) a funny name that brings a smile to your face, but they do real serious work,” Brown said.

Kuwait lifts avian flu-related ban on US poultry

Kuwait has lifted its ban on imports of poultry from the United States. The ban had been put in place earlier in 2015 in response to the outbreak of highly pathogenic avian influenza (HPAI) that hit the United States.
However, no new cases of highly pathogenic avian influenza have been confirmed since June and the World Organisation for Animal Health (OIE) has stated that the U.S. can now declare itself free of H5N2 highly pathogenic avian influenza.
The lifting of the trade restrictions followed several rounds of discussions regarding the ban between embassies between the two countires. Virginia Gov. Terry McAuliffe also took part in the discussions.
“Today’s announcement marks another victory for Virginia agriculture in the global marketplace,” McAuliffe stated. “I want to thank the Kuwait Embassy to the U.S., the U.S. Embassy to Kuwait, U.S. Department of Agriculture Foreign Agriculture Services staff, and many others for the efforts to have the ban lifted. I’m hopeful that Kuwait’s action will allow Virginia’s poultry exporters to quickly take advantage of the opportunity for more sales into a growing export region.”
Several other countries have lifted avian influenza-related bans on U.S. poultry, with Oman being one of the most recent. It was announced in late November that Oman lifted its ban on all U.S. poultry imports.

US poultry exports to Cuba resume

Cuba has resumed imports of U.S. poultry after initiating a ban that stretched through August and September. The initial trade ban was implemented over concerns about the possible spread of avian influenza, despite the fact that the virus primarily affected layer and turkey flocks and impacted few broiler chickens.
According to a Reuters report, traders confirmed that Cuba has purchased at least 30 million pounds of U.S. chicken, which will be delivered in October.
U.S. chicken exports to Cuba totaled $147.5 million in 2014. Chicken accounts for close to half of the agricultural exports from the U.S. to Cuba, although exports to Cuba are down in 2015.
The end to the ban comes after the U.S. has gone nearly four months without a new confirmed case of avian influenza. The last case confirmed by the USDA Animal and Plant Health Inspection Service (APHIS) involved a layer flock of 1 million chickens in Wright County, Iowa.
With improved governmental relations between the U.S. and Cuba and increased demand for poultry products there, Cuba has been eyed as a major growth area for U.S. chicken exports. Its proximity to the U.S. also plays a factor. Cuba is about 550 miles south of Georgia, the largest producer of broiler chickens in the United States.

US cooked poultry returns to South Korean commissaries

Cooked poultry products will return to commissaries in South Korea by early September, following a change in the country’s embargo on poultry products from the United States.

The embargo, which had restricted the import of poultry products since December, was put in place over fears of the spread of avian influenza.

However, in July, the USDA issued a revision to the South Korean embargo to allow heat-treated poultry products from the U.S. The Defense Commissary Agency (DeCA) soon placed orders with U.S. suppliers to restock commissaries in South Korea with cooked poultry products.

“Frozen dinners, pot pies, nuggets, lunch meats, franks, Lunchables and other popular cooked poultry products will begin to arrive by early September,” Wayne Walk, DeCA’s zone manager in Korea, told EPR Retail News. “With school starting back up, this is great timing for parents packing lunches and for anyone looking for easy-to-prepare meals.”

Uncooked poultry from the U.S. is still restricted by the embargo, but DeCA has alternate sources for uncooked poultry to replace many of the items it previously received from U.S. suppliers.

According to Walk, fresh, uncooked chicken and eggs from Korea are stocked. Commissaries also began offering chicken from Australia earlier in August.

Avian flu takes toll on US poultry, egg exports in 2015

While the highly pathogenic virus is on somewhat of a hiatus during the warmer months of summer, the U.S. industry is bracing for its possible return this fall, as migratory birds – thought to be the primary vectors of the virus – head south for the winter. State and federal officials worry that wild birds will carry the virus into the Atlantic flyway that cuts through the heart of the main poultry-producing areas of the mid-Atlantic and Southeast.
Exporters, meanwhile, hope for the best after a disheartening first half of the year. Poultry meat exports for January through June plummeted by 9 percent to 1.84 million metric tons, while value fell by 15 percent to $2.241 billion. The impact goes beyond exports, as more product on the domestic market means lower prices that add to the losses.
Exports of poultry meat for the month of June were down 14 percent to 305,504 tons, while value dipped by 25 percent to $348.8 million, compared to the same month a year earlier.

U.S. poultry and egg exports by category

Broilers– Monthly broiler exports (excluding chicken paws) for June fell by 9 percent to 255,721 tons, and value slid by 23 percent to $262.5 million.
For the first half of the year, broiler exports dipped by 9 percent to 1.52 million tons as value fell by 16 percent to $1.68 billion. Korea’s blanket ban on all U.S. product earlier this year because of HPAI was a significant contributor to the decline.
Export volumes to key markets for January through June were mixed: Mexico, down 6 percent to 330,963 tons; Taiwan, up 52 percent to 106,274 tons; Canada, up 22 percent to 87,067 tons; Hong Kong, up 49 percent to 79,519 tons; Cuba, 71,076 tons, up 1 percent; Angola, 67,420 tons, down 29 percent; Iraq (including transshipments via Turkey), 55,976 tons, down 37 percent; Guatemala, 48,803 tons, down 24 percent; Georgia, 46,402 tons, up 4 percent; and Vietnam, 45,298 tons, up 78 percent.
Chicken paws– June paw exports fell by 35.3 percent to 16,657 tons, while value was off by 44.4 percent to $20.9 million. Shipments to Hong Kong decreased by 22 percent to 15,442 tons.
Cumulative exports of paws for the first half declined by 21.6 percent to 110,315 tons as value dropped 25.5 percent to $148.6 million.
Turkeys– June was not a good month for U.S. turkey exports, which fell by 40 percent to 18,945 tons and value dropped by 29 percent to $47.1 million, thanks largely to decreased shipments to Mexico (down 45 percent).
Cumulative first-half turkey exports decreased by 21 percent to 106,786 tons, while value fell by 15 percent to $285.7 million.
The top five markets in the first half of Mexico, Canada, Hong Kong, Benin, and Japan accounted for 77 percent of total first-half turkey export volume, with Mexico alone accounting for 63 percent.
First-half turkey exports to Mexico were 79,597 tons, down 22 percent; Canada, 5,131 tons, up 2 percent; Hong Kong, 4,647 tons, up 64 percent; Benin, 3,830 tons, down 0.03 percent; and Japan, 2,973 tons, down 25 percent.
Table eggs– June table egg export volume also took a hit, falling by 24 percent for the month to 9.97 million dozen. The export value of eggs actually increased slightly to $14.6 million, however, because of higher market prices brought about by HPAI-induced domestic shortages.
Thanks in part to a strong first quarter, cumulative January-June table egg exports rose by 5 percent to 83.2 million dozen and value jumped by 16 percent to $101.14 million.
The top five markets of Canada, Mexico, Hong Kong, Bahamas, and Netherlands Antilles accounted for 95 percent of total exports for the period, and Mexico alone accounted for 40 percent.
Processed egg products– For egg products, June export value plummeted by 58 percent to $5.3 million. Export sales to Japan were $1.9 million, down 37 percent year over year, while export value to Mexico was $0.34 million, down 91 percent.
The cumulative first-half export value of egg products fell by 14 percent to $62.8 million. Export value to Japan decreased by 15 percent to $20.5 million, while exports to Mexico dipped by 5 percent to $17.7 million. Exports to the EU grew by 14 percent to $5.95 million, exports to Canada and Hong Kong decreased by 21 and 19 percent to $7.3 million and $1.7 million, respectively. Export sales to these top five markets totaled $53.11 million, accounting for 84.5 percent of total exports of U.S. egg products.
Total egg exports (table eggs plus egg products in shell egg equivalent units) for the first half were 145.13 million dozen, down 9 percent from the same period a year earlier, with an export value of $164 million, up 2 percent.

India to comply with WTO order to end US poultry ban

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  National Chicken Council

  India is examining ways it can comply with the World Trade Organization's ruling to end its ban on U.S. poultry.

  From WATTAgNet:
  India’s government is examining ways to comply with an order from the World Trade Organization (WTO) to end its ban on U.S. poultry and poultry products.
  The country’s commerce secretary, Rajeeve Kher, told reporters the commerce department was in consultation with the Ministry of Agriculture so it can abide by the ruling.
  The WTO on June 4 upheld its ruling that India’s ban on U.S. poultry and egg imports is unfair. The initial decision was issued by the WTO in October 2014, but officials from India appealed the ruling on January 26.
  The dispute between India and the U.S. dates back to 2007, when India banned imports of various agriculture products from the United States in what it called a precautionary measure to prevent outbreaks of low pathogenic avian influenza. The USA Poultry & Egg Export Council (USAPEEC) and National Chicken Council (NCC) disagreed, calling India’s ban “thinly veiled protectionism” in a joint statement, and that India provided no scientific evidence to support the ban.
  Once the ban is fully removed, the U.S. is likely to benefit as India’s broiler meat consumption has been steadily increasing. Broiler consumption in India was estimated to have reached 3.72 million metric tons in 2014, up from an estimated 3.45 million metric tons consumed in 2013.

US, South Africa reach deal for fair poultry trade

U.S. and South African negotiators on June 5 reached an agreement to end South Africa’s tariffs on U.S. poultry. With the agreement reached, U.S. poultry products are expected to enter the South African market before the end of 2015.
The negotiations were led by the United States Trade Representative (USTR), the Department of State, U.S. Ambassador to South Africa Patrick Gaspard and trade experts from industry.
“Poultry farmers in Georgia, Delaware and across the country should be able to compete on a level playing field in markets around the world, but for too long, that hasn’t been the case in South Africa,” said Sen. Johnny Isakson and Sen. Chris Coons, co-chairs of the Senate Chicken Caucus. “This is a significant win today in our home states, and an important day for American agriculture.”
“We are pleased that significant progress was made between the U.S. and South African chicken industries that will allow U.S. chicken products access to South Africa after being blocked from that market for the past 15 years,” the senators continued. “A U.S. government delegation, which was led by U.S. Ambassador Gaspard and included trade experts from industry, the U.S. Trade Representative and the Department of State, was able to address the most significant obstacles and reach agreement on a path forward for market access. While there are a few details that still need to be addressed, both sides have agreed on a process that should allow those to be addressed by the end of this month.”
The news was embraced by the USA Poultry & Egg Export Council (USAPEEC) which has been actively pushing for open and fair poultry trade with South Africa.
“We’re pleased with today’s announcement by the Office of the U.S. Trade Representative and by the offices of Senators Chris Coons of Delaware and Johnny Isakson of Georgia that an agreement has been reached in the dispute between the U.S. and South African poultry industries, which paves the way for the reopening of the South African market to U.S. chicken imports, which have been shut out for the past 15 years.  We look forward to working with our government and the South Africans on implementing this important agreement,” USAPEEC said in a statement. “The real winners will be South Africa’s consumers who will soon have access to additional and affordable protein choices.”

WTO reaffirms India ban on US poultry, eggs unfair

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  National Chicken Council

  The World Trade Organization has again ruled that India's ban on poultry and eggs from the United States is unfair.

  From WATTAgNet:
  The World Trade Organization (WTO) has upheld its ruling that India’s ban on U.S. poultry and egg imports is unfair.
  The initial decision was issued by the WTO in October 2014, but officials from India appealed the ruling on January 26.
  The dispute between India and the U.S. dates back to 2007, when India banned imports of various agriculture products from the United States in what it called a precautionary measure to prevent outbreaks of low pathogenic avian influenza. The USA Poultry & Egg Export Council (USAPEEC) disagreed, and called India’s ban “thinly veiled protectionism” and that India provided no scientific evidence to support the ban.
  The WTO ruling, issued on the morning of June 4, and those who lobbied for it are being applauded by U.S. industry groups, including USAPEEC and the National Chicken Council (NCC).
  "We want to thank U.S. Trade Representative Michael Froman and U.S. Secretary of Agriculture Tom Vilsack, and their teams, for their tireless work to pursue this case to the favorable outcome that was achieved today," said NCC and USAPEEC in a joint statement about the WTO ruling.  "Indian consumers deserve access to affordable and safe protein, which the U.S. has the ability to provide. We hope that the Indian administration will comply with the ruling and will be amenable to working with the U.S. government and industry to remove all restrictions and allow access for U.S. poultry in the near future, which we estimate would be $300 million a year once India's restrictions are removed."

WTO again rules against US in COOL dispute

The World Trade Organization (WTO) on May 18 ruled against the United States in a dispute concerning country of origin labeling (COOL) requirements for meat products. The most recent decision is the WTO’s fourth and final ruling concerning U.S. COOL laws, which had been repeatedly appealed by the U.S.
U.S. COOL laws have been the center of a long-standing North American dispute, as Canadian and Mexican officials have called the laws unfair and in violation of international trade obligations.


Canada reiterates threat of retaliatory measures
Canada has particularly been critical of U.S. COOL rules, and has repeatedly threatened retaliatory measures against the U.S. if the rules are not repealed.  In a joint statement issued on the day of the most recent and final ruling, Canadian Minister of International Trade Ed Fast and Canadian Minister of Agriculture and Agri-Food Gerry Ritz, reaffirmed their seriousness about retaliatory measures.
“For the fourth time, the WTO has ruled against the United States’ COOL policy, reaffirming Canada’s long-standing position that these measures are blatantly protectionist and discriminate against Canada,” the ministers said. “The United States has used and exhausted all possible means to avoid its international obligations, damaging our highly integrated North American supply chain and hurting producers and processors on both sides of the border. Once again we call on the United States to cease this harmful policy and repeal COOL’s provisions against beef and pork, removing this unnecessary trade barrier. In light of the final ruling, and due to the fact that the United States has continued to discriminate against Canadian livestock products, Canada will be seeking authority from the WTO to use retaliatory measures on U.S. agricultural and non-agricultural products.”


US industry groups, government leaders urge swift corrective measures on COOL
While the governments and trade organizations in both Canada and Mexico have been against U.S. COOL rules, it also has had its share of opponents in the U.S., including House Agriculture Committee Chairman K. Michael Conaway, the National Pork Producers Council (NPPC) and the North American Meat Institute (NAMI).
In a statement issued shortly after the ruling, Conaway said WTO’s ruling was expected, and he will push for quick action to resolve the issue.
"As retaliation by Canada and Mexico becomes a reality, it is more important now than ever to act quickly to avoid a protracted trade war with our two largest trade partners," said Conaway. "I have asked my colleagues on the agriculture committee to weigh in on resolving this issue once and for all during a business meeting this Wednesday in a targeted effort to remove ongoing uncertainty and to provide stability.”
NAMI also responded to the ruling, calling for a change.
“Any action other than repeal invites retaliation from Canada and Mexico that could cost the U.S. economy billions of dollars. We look forward to working with Congress to repeal COOL once and for all, so that the United States can comply with its trade obligations, avoid unnecessary retaliation against our products and restore our strong relationships with important trading partners,” stated Barry Carpenter, NAMI president and CEO.
The U.S. National Farmers Union (NFU), which has been more supportive of COOL rules, stated it still sees value in COOL, but a new agreement should be worked out between the three countries.
“As we have seen in other disputes, once decisions are handed down, WTO members often work together to find a solution that will work for them,” said NFU President Roger Johnson. “In this case, such a solution must involve continuation of a meaningful country-of-origin labeling requirement.”
Conaway will host a press conference regarding COOL on May 19 that includes a bipartisan group of congressional members, and various industry groups including NPPC.

Senate Finance Committee votes to hold South Africa accountable for blocking U.S. chicken

The United States Senate Committee on Finance earlier has approved unanimously by voice vote language that would put pressure on South Africa to remove unfair limits on American chicken imports. The bipartisan amendment, sponsored by Senator Johnny Isakson (R-Ga.) and cosponsored by Senators Tom Carper (D-Del.) and Mark Warner (D-Va.), would require the president conduct an out-of-cycle review of South Africa within 30 days of enactment of African Growth Opportunity Act (AGOA), a trade agreement between the United States and sub-Saharan African countries.
"I want to thank Senator Isakson for spearheading this issue in the Finance Committee, along with Senators Carper and Warner for their support," said National Chicken Council President Mike Brown. "Together with Senator Chris Coons (D-Del.), who helped craft the amendment, this issue of huge importance to U.S. chicken producers has been kept on the front burner in Congress."
In 2000, about the same time that South Africa began imposing unfair and punitive antidumping duties on U.S. chicken, Congress passed AGOA, which gave preferential market access and lower import duties to about 35 African countries, including South Africa. The bill that passed out of committee today renews AGOA for 10 years and includes Senator Isakson's amendment. It now moves to the full Senate for consideration.
"Our industry supported AGOA," added Brown. "But, for the past 15 years while South Africa benefitted from preferential duties under AGOA, it has simultaneously and unfairly excluded our chicken from its market. In our view, South Africa's unfair and protectionist practices must be addressed before Congress would be justified in extending the AGOA program. Today's bipartisan action by the Finance Committee puts us one step closer to achieving that reality."
Brown continued, "This should send a clear message to South Africa and their poultry industry that they will not be given a 'Get out of jail free' card every time AGOA rounds the turn to pass 'Go.' It makes no sense for the United States to give special preferences to countries that treat our trade unfairly."
Last month, 13 senators wrote to the South African government to express their concern about the lack of progress being made in negotiations between the South African and American poultry industries
Under the current law, the U.S. government's only option for punishing an African country that fails to live up to the trade standards outlined in AGOA is the complete termination of benefits for that country. The reauthorization legislation for AGOA passed today gives the United States the option to selectively limit or temporarily suspend benefits without having to terminate them completely. This gives the United States the upper hand in trade negotiations, further protecting American businesses, according to a press release from Senator Isakson. 

Jamaica bans poultry from states hit by avian influenza

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  National Chicken Council

  Jamaica has banned imports from U.S. states and Canadian provinces that have been affected by avian influenza.

  From WATTAgNet:
  Jamaica has imposed import restrictions on poultry products from various locations in North America in the wake the numerous avian influenza outbreaks that have occurred in the United States and Canada.
  The island's agriculture ministry has announced that fresh and frozen poultry, hatching eggs and various byproducts from U.S. states, Kansas, Arkansas, Missouri, Minnesota, California, Idaho, Oregon and Washington, will be restricted until further notice. Poultry imports from Canada's British Columbia were also restricted, effective March 19.
  The Jamaican government said the trade restriction measures "are intended to safeguard the country's poultry and public health" from the H5N2 avian influenza strain.
  Numerous other countries have already banned poultry imports from impacted North American areas.
  Jamaica takes other steps to keep avian influenza away
  In addition to the imposition of immediate trade restrictions, the Jamaican agriculture ministry says it has taken other steps to safeguard Jamaica’s poultry and human health.
  It says a National Emergency Animal Disease Committee is in place to execute programs necessary to ensure Jamaica's preparedness to handle outbreaks of animal diseases, including avian influenza. The ministry also says it has engaged major players in the poultry industry and has been communicating with importers, Jamaica Customs Agency and the Ministry of Health on the matter.
  The ministry says further engagement will involve backyard and small-scale poultry operators, egg farmers, pet bird owners, pet stores and all other stakeholders to ensure full cooperation.

US poultry and egg exports set records in 2014

Despite the loss of the Russian market for the fourth quarter, U.S. poultry export quantity in 2014 set a new record for the second consecutive year, and the value of those exports was the second-highest in history, according to year-end trade data released recently by the Foreign Agricultural Service (FAS).
Exports of U.S. poultry in 2014 reached 4.1 million metric tons, 0.4 percent ahead of 2013, while value fell 0.3 percent to $5.501 billion.
The record exports came even after Russia enacted an embargo in August 2014 on most imports of food and agricultural products from the West in response to U.S., Europe and others over Russia’s activities in Ukraine.
 “This record year demonstrates that the U.S. industry has become much more diversified and is no longer dependent on one or two export markets,” said Jim Sumner, president of the USA Poultry & Egg Export Council (USAPEEC), which promotes U.S. poultry and egg exports through its network of 14 international offices. “Only a few years ago, losing a market like Russia would have been devastating. Now, it barely caused a ripple.”
The combined value of U.S. poultry and egg exports for 2014 came within less than one percentage point of the previous record, also set in 2013, reaching $5.838 billion, down just 0.2 percent, according to the FAS data.


Record year for US egg exports
Also, 2014 was a record year for exports of U.S. eggs. Combined exports of table eggs and processed egg products, measured in shell-egg equivalents, increased by 1 percent to 352.7 million dozen, while their value inched up 0.4 percent to $336.75 million.


Broiler meat exports
U.S. broiler meat exports (excluding chicken paws) 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 were Mexico, up 9 percent to 696,230 tons; Russia, down 48 percent to 143,942 tons, thanks to the embargo; Angola, up 12 percent to 231,717 tons; and Canada, down 4 percent to 162,699 tons.
Other key broiler markets in 2014 were Cuba, 143,582 tons, up 3 percent;Iraq (including transshipments via Turkey), 147,774 tons, down 10 percent;China, 117,887 tons, down 10 percent; Taiwan, 115,407 tons, up 20 percent; Hong Kong, 105,445 tons, up 47 percent; and Georgia, 87,368 tons, up 1 percent.


Chicken paw exports
Exports of U.S. chicken paws last year reached 312,851 tons valued at $441.9 million, up 4 and 19 percent, respectively. Hong Kong accounted for 72 percent of total U.S. shipments of paws, while China accounted for 25 percent. Paw exports to Hong Kong were up 122 percent and shipments to China fell by 48 percent.


US turkey exports second-highest in history
U.S. turkey export quantity in 2014 was the second-highest ever, rising by 6 percent to 364,915 tons, surpassing the 2012 record. Export value, meanwhile, set a new benchmark, up 11 percent to $766.8 million.
Key markets included Mexico, 230,990 tons, up 24 percent; China, 27,573 tons, down 36 percent; Canada, 10,336 tons, up 2 percent; Benin, 6,570 tons, up 11 percent; and Hong Kong, 6,352 tons, up 12 percent.
The top five markets for U.S. turkey – Mexico, China, Canada, Benin, and Hong Kong – captured 77 percent of total export shipments in 2014, with Mexico alone accounting for 63 percent.


Table eggs
For table eggs, 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. Exports reached an all-time high in both quantity and in value.
Shipments to Canada increased by 103 percent to 79.8 million dozen. Other key markets were Hong Kong, 49.5 million dozen, down 4 percent;Mexico, 43.9 million dozen, down 29 percent; the European Union, 4.8 million dozen, down 44 percent; and Trinidad and Tobago, 3.9 million dozen, up 39 percent. The top five markets accounted for 92 percent of the total table egg shipments last year.


Processed eggs
Exports of processed U.S. egg products dropped by 9 percent last year to $138.36 million. Export sales to Japan decreased by 19 percent to $40.73 million, accounting for 29 percent of U.S. exports of egg products. Although exports to Mexico fell by 11 percent to $33.64 million, shipments to Canada shot up by 40 percent to $20.11 million.

India appeals WTO ruling on ban of US poultry

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  National Chicken Council

  India has appealed the World Trade Organization's ruling that stated India's ban on U.S. poultry was unfair.

  From WATTAgNet:
  India has challenged a World Trade Organization (WTO) ruling that the country's ban on U.S. poultry product imports was inconsistent with global norms.
  India on January 26 appealed to the Dispute Settlement Board of the WTO.
  "WTO Secretariat received ... a notice by India announcing its decision to appeal certain issues of law and legal interpretation in the panel report in the case," the WTO stated.
  A senior government official also said India has approached the WTO's appellate authority against the order of the dispute panel on the poultry issue. India had banned imports of various agriculture products from the U.S. in 2007 in what it called precautionary measure to prevent outbreaks of avian influenza.
  However, officials from the USA Poultry & Egg Export Council (USAPEEC) called India’s ban on U.S. poultry “thinly veiled protectionism,” and said India produced no scientific evidence to support the validity of the ban.
  India has claimed that the panel committed several legal errors in its interpretation and application of numerous articles of the SPS agreement.
  Parties to a dispute can appeal a WTO panel's ruling. Appeals have to be based on points of law, such as legal interpretation. They, however, cannot re-open factual findings made by the panel.

China bans US poultry and eggs because of avian influenza

The Chinese government will ban all imports of U.S. poultry and egg products because of recent detections in the U.S. of highly pathogenic avian influenza (HPAI) in backyard poultry and wild birds in the Pacific Northwest.
In a joint announcement posted on official websites in China, the Ministry of Agriculture (MOA) and the General Administration for Quality Supervision, Inspection and Quarantine (AQSIQ) imposed nationwide restrictions on imports of processed and unprocessed U.S. poultry and eggs, effective January 8. The ban also applies to breeding stock, which includes live chicks and hatching eggs.
The ban is in response to a December detection of a highly pathogenic strain of H5N8 influenza in wild birds and in a backyard flock of guinea hens and chickens in Oregon, along with separate H5N2 HPAI detections in wild birds in California and Washington State. MOA and AQSIQ imposed the restrictions despite assurances by the USDA’s Animal and Plant Health Inspection Service (APHIS) that the influenza virus has not been found in any commercial poultry flock in the U.S.
China is a key export market for U.S. chicken, turkey and duck products. From January through November last year, U.S. exports to China reached nearly $290 million.
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 (OIE), according to the USA Poultry & Egg Export Council (USAPEEC). In its Terrestrial Animal Health Code, the OIE recommends that countries adopt a regionalized approach to HPAI incidents to minimize the impact on trade.
APHIS notified the OIE of the Oregon detection, as required. “USDA expects trading partners to respond to this reported detection according to the OIE’s science-based standards,” the agency said in a statement following the Oregon H5N8 detection.
The statement stressed that the virus was contained to the affected premises and has not been found in commercial poultry. APHIS also said that state and federal officials have increased ongoing surveillance of commercial poultry and backyard flocks in the Pacific Northwest.
The agency noted that commercial producers “follow strict biosecurity practices and raise their birds in controlled environments,” which lessens the possibility of an outbreak HPAI in commercial flocks, and that poultry is safe to eat if properly handled and cooked.
“There’s absolutely no justification for China to take such a drastic action,” said Jim Sumner, president of the USAPEEC. “In fact, 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 taken some sort of regionalized approach, and have limited their restrictions to the state or, in some cases, to the county,” he said. “We would have expected China to do the same.”
China’s nationwide restrictions could also have a negative impact on its domestic poultry industry, Sumner said. “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.”

Oregon poultry subjected to numerous trade bans

In response to the recent positive detection of highly pathogenic avian influenza (HPAI) in a backyard poultry flock in Oregon, a number of countries have issued trade restrictions on poultry from Oregon.
According to information provided by the USA Poultry & Egg Export Council (USAPEEC), trade restrictions have been put in place by Korea, European Union, South Africa, Japan, Taiwan, Hong Kong, Canada, Thailand, Singapore, Barbados, Saudi Arabia, Colombia, Belarus, and the United Arab Emirates (UAE).


Korean ban
The Korean Ministry of Agriculture, Food and Rural Affairs (MAFRA) banned all imports of raw U.S. poultry, eggs, live chicks and hatching eggs, effective December 20. In a press release issued on December 21, MAFRA said that the ban applies to raw poultry slaughtered and eggs laid on or after November 25.


European Union ban
The EU has imposed transit restrictions on all U.S. poultry, effective December 19, presumably because of the detection of avian influenza in Oregon. This has major implications for transshipped product for Kazakhstan and other markets that must transit European ports.


South Africa
The South African Department of Agriculture, Forestry and Fisheries (DAFF) issued a letter to importers that it is also banning all imports of U.S. poultry and poultry products because of the Oregon HPAI detection. The DAFF ban applies to products shipped on or before December 24, with a production date cutoff of November 25.


Japan
Japan’s ban is limited to Oregon-originated poultry product slaughtered before November 24.


Taiwan
Taiwan has issued a ban that applies to product originating in Oregon and loaded on or after December 19.


Hong Kong
Hong Kong has issued a ban that applies to product originating in Douglas County, Oregon, slaughtered on or after December 19.


Canada
Canada, which has also been dealing with cases of avian influenza, has issued a ban that is limited to poultry from Oregon.


Thailand
The Thai government has notified USDA that it intends to ban all U.S. poultry products, most likely effective December 22. No U.S. chicken is shipped to Thailand, but the ban will affect some turkey exports. It’s unclear whether cooked products will be permitted.


Singapore
Unofficially, Singapore has limited its restrictions to poultry from Oregon.


Other trade restrictions
Other countries issuing restrictions include Barbados, Saudi Arabia, Colombia, Belarus and the UAE. Effective dates vary.

Russia bans US poultry imports

Russia on August 6 implemented trade restrictions on imports of U.S. poultry. The ban coincides with Russian President Vladimir Putin signing a decree that places restrictions on imports of agricultural products from countries that have imposed economic sanctions on Russia as a result of the ongoing situation in Ukraine.
Although the decree did not specify the products that would be affected, it instructs the Russian government to establish a list of commodities to be restricted, and states that restrictions would be effective for one year. The decree also instructs officials to ensure that restrictions prevent price increases and to establish market-control measures to increase supplies of domestic goods.
In a press release, the USA Poultry & Egg Export Council (USAPEEC) and National Chicken Council (NCC) jointly stated that the groups had learned that poultry from the United States is one of the commodities to be included on the list.
Trade ban’s impact on U.S. poultry industry limited
Russia is the second-leading market for U.S. chicken, according to USAPEEC. In 2013 the U.S. exported about 267,000 metric tons of chicken to Russia valued at $303 million. As its domestic poultry industry has expanded, Russia has in recent years become less important as an export market. Russia currently accounts for only about 7 percent of total U.S. poultry export volume. 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 U.S. organizations stated.
Import restrictions believed to hurt Russians the most
USAPEEC, NCC and the American Farm Bureau Federation (AFBF) expressed regret that the Russian government’s decision to impose trade bans for political reasons will most directly affect its own citizens.
“It is unfortunate that the biggest losers in this will be Russian consumers, who will pay more for their food now as well as in the long run,” said AFBF President Bob Stallman.
The price of poultry in Russia is already rising and has recently been increasing at a rate of 2 percent to 3 percent per week.
NCC and USAPEEC stated that the organizations look forward to working with the U.S. government to resolve the issue and resume normal trade relations with Russia as soon as possible.

Russia mulls restrictions on US poultry over Salmonella worries

Russia is considering restricting imports of poultry from the United States, citing fears of Salmonella. If trade restrictions are approved, Rosselkhoznadzor, the Russian federal service for veterinary and phytosanitary surveillance, could implement them within the next several weeks, according to a report from RIA Novosti.
“At the moment this dangerous disease has spread to half of U.S. states and into numerous poultry farms. This cannot fail to arouse our concerns. This may become a reason to introduce restrictions,” stated Alexey Alexeenko, head of Rosselkhoznadzor.
According to the latest report from the Centers for Disease Control and Prevention (CDC) As of July 2, 621 individuals infected with the outbreak strains of Salmonella Heidelberg had been reported from 29 states and Puerto Rico since March 1, 2013. The outbreak was tied to chicken processed at three Foster Farms plants in California.
If the Russian agency implements the trade restrictions on U.S. poultry, it will not be the first in recent months. Rosselkhoznadzor in April suspended the shipments of poultry from California, RIA Novosti reported, after a case of low pathogenic H5 avian influenza was discovered. The case involved a layer flock of Japanese quail in California’s Stanislaus County and has since been resolved, according to the World Organisation for Animal Health (OIE).

NCC: Trade deals should provide access, enforcement

With the Obama administration actively negotiating new free trade agreements with Asia and Europe, National Chicken Council adviser Kevin Brosch testified before the Senate Committee on Finance June 25 about the effectiveness of the enforcement of any new agreements and the trade agreements the United States already has on the books.
"We are generally supportive of all major initiatives to promote free trade, but we must make sure both our existing agreements and new agreements provide not only strong market access but also adequate means to enforce that access," Brosch said in testimony before the Senate Committee on Finance at the hearing: Trade Enforcement: Using Trade Rules to Level the Playing Field for U.S. Companies and Workers.
"In our view, the prosecution of the Chinese antidumping case before the World Trade Organization (WTO) represents U.S. trade policy at its best; enforcing those trade rights for which we already have negotiated," Brosch said.
In 2009, China imposed antidumping duties on U.S. chicken using the so-called "weight-based cost of production" theory.  Under this approach all parts of an animal are given the same value per unit of weight; and so, hamburger has the same value as filet mignon; chicken paws have the same value as chicken breast meat. Clearly, the NCC states, this theory is economically unsound and, for several reasons, is legally impermissible under WTO rules.
Immediately after China announced its decision to impose antidumping duties, the Obama administration aggressively litigated the case before the WTO. In 2013 a WTO panel ruled in favor of the United States. China elected not to appeal that decision and China's announcement of how it will change its antidumping decision to come into compliance with WTO rules is expected in July.
"China represented a 700,000 metric ton market for U.S. poultry at the time the antidumping duties were imposed, and is potentially an even larger market for our products in the future," Brosch said. "We are grateful to this administration for pursuing our rights in this case."
But there have been some very significant disappointments and we have learned some difficult lessons over the past 20 years. Using examples of cases in Mexico, the European Union and South Africa, Brosch said the first lesson is "that enforcement of trade agreements must become more automatic and timely."
For example:


• The United States' case against Mexico was instituted nearly two years ago, after an antidumping case which was also brought on the very dubious "weight-based cost of production" theory. At present, the NCC does not have a panel to hear the case. NCC believes there is a significant problem here of enforcement that needs to be addressed.
• The U.S. poultry industry asked that the EU be taken to dispute settlement as there was no scientific basis for the EU's trade barriers on U.S. poultry imports which began in 1996. For reasons that have never been explained, the United States and the EU have taken no actions to form a panel over the past four years, and there is no indication that the U.S. government is pursuing enforcement of the case at present.
• Another longstanding problem has been with enforcement of our right against the unfair and protectionist practices of the Republic of South Africa (RSA). Because the United States has not challenged the RSA at the WTO and enforced the U.S. poultry industry's rights, the U.S. poultry industry has been entirely shut out of the South African market for 15 years.The U.S. poultry industry believes this must be addressed before Congress would be justified in extending the African Growth Opportunity Act programs.


"With respect to the Trans Pacific Partnership (TPP)," Brosch continued, "Our major goals are to get a strong commitment on enforcement, in particular in the area of sanitary and phytosanitary (SPS) measures.  Our second major ambition is to see that the long-protected Canadian market is finally opened to trade, which should have been opened to free trade as a result of NAFTA.  If TPP is truly a free trade agreement, then there should be free trade in poultry between the United States and Canada, not just one-way market access for Canada.
"We are frankly less sanguine about the prospects for poultry under the proposed Transatlantic Trade and Investment Partnership (TTIP) agreement with Europe.  The ban currently imposed by EU regulations on importation of U.S. chicken because of our safe and proven use of chlorinated water as an antimicrobial is not based on sound science and is inconsistent with WTO rules.  TTIP would only be of use to our industry if the negotiations resulted in the removal of these SPS barriers that Europe has had in place for nearly 18 years."

Perdue shipment to mark end of China ban on Virginia poultry

Leaders from Perdue Farms and the Commonwealth of Virginia expect to see chicken exports increase dramatically as China’s seven-year-old ban on poultry from Virginia comes to an end. Virginia Gov. Terry McAuliffe on June 17 announced that the first shipment of Virginia poultry to China since 2007 – chicken wing products from Perdue Farms -- will be leaving June 20.
McAuliffe, who was joined by Carlos Ayala, Perdue Foods international vice president, and Todd Haymore, Virginia secretary of agriculture and forestry, saw the poultry products being loaded at a Perdue cold storage facility in Norfolk. The shipment is expected to arrive in Shenzhen, China on August 3.
Perdue, Virginia anticipate uptick in poultry exports
Perdue expects that with the lifting of the ban, the company will increase its volumes shipped from Virginia to increase by about 35 percent, according to a press release issued by McAuliffe’s office.
Haymore believes the end to the Virginia poultry ban, which was implemented after a low pathogenic form of avian influenza was detected at a single Virginia turkey farm, will also greatly increase Virginia’s total poultry export numbers.
“We estimate conservatively that Virginia will see at least $20 million in poultry exports to China during the first full year the market is open, but we’re hoping to far exceed that number,” said Haymore. “We have great assets that will allow us to accomplish that goal including Virginia’s existing business with China, the governor’s commitment to expanding that business, our agricultural trade representative in Shanghai working to generate new sales leads and an aggressive poultry industry producing high-quality and wholesome products. I am confident that we have the infrastructure in place to quickly re-establish Virginia as one of China’s top poultry purchasers.”
Other Virginia industries to benefit from ban's end
McAuliffe added that the end to the ban will not only help the Virginia poultry trade, but also other industries within the commonwealth.
“The resumption of business means more trade and revenue generation opportunities for Virginia’s poultry industry and the many related businesses that work to move products from our family farms into the global marketplace. This will also bring significant benefits to the Port of Virginia, an entity that I want to become the East Coast capital for agricultural and forestry product exports,” he said. 

US turkey exports down nearly 15 percent in February

Exports of U.S. turkey dropped nearly 15 percent in February on a year-over-year basis, with shipments reaching a total of 51.7 million pounds. February’s U.S. turkey export figures were released in the April 15 USDA Livestock, Dairy and Poultry Outlook report.
Shipments of U.S. turkey to South Korea saw the largest percentage drop at nearly 94 percent. February turkey exports dropped to 112,000 pounds in February, compared to 1.8 million pounds in February 2013. U.S. turkey exports to China for February dropped 68.2 percent from 11.4 million pounds to 2.6 million pounds.
Mexico, which in 2013 accounted for 59 percent of all U.S. turkey shipments, received 0.2 percent less U.S. turkey on a year-over-year basis in February.
The USDA’s April forecast for 2014 U.S. turkey exports at 710 million pounds, a decrease of 50 million pounds from its March forecast. The United States exported 758 million pounds of turkey in 2013.