Bird Flu Jeopardizes Global Poultry Trade: FAO

Bird flu jeopardizes global poultry trade: FAO

LUSAKA, March 12 (Xinhua) — Recent bird flu outbreaks in Europe, Middle East and Africa have caused dramatic swings in poultry consumption, increased trade bans and sharp price declines, the Food and Agriculture Organization (FAO) has said.

The UN agency expects poultry consumption shocks this year in many countries in Europe, Middle East, and Africa that have been hit by avian influenza.

As unfounded fears of disease transmission reduce consumption and imports, lower domestic prices are forecast to limit production growth.

A steady erosion of previously expected gains in per capita poultry consumption will likely push down global poultry consumption in 2006, currently estimated at 81.8 million tons, nearly 3 million tons lower than the previous 2006 estimate of 84. 6 million tons, said FAO commodity specialist Nancy Morgan.

Up until recently, international poultry prices had been driven up by over 30 percent because of declining exportable supplies. Developments in 2006 indicate a very different picture.

Consumption shocks are progressively lowering global import demand for broiler parts. Poultry prices are expected to continue declining, threatening industry profitability around the world and household livelihood and rural employment opportunities in developing countries, said the FAO.

In Europe, consumption shocks are ranging from a 70 percent fall in Italy in mid February to 20 percent in France and 10 percent in northern Europe, said the specialist.

Morgan said the bird flu has also affected the 42 billion U.S. dollars feed sector in Europe with demand losses estimated at up to 40 percent in some countries.

About 200 million chickens have been culled or died of the bird flu since the onset of the crisis late 2003, said the FAO.