Dive Brief:
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South Korea suffered a serious outbreak of the H5N6 avian influenza in November, costing the country 30 million birds – many of them layer hens, according to Meat & Poultry.
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The U.S. Department of Agriculture has worked out a trade agreement with South Korea to help fill the gap, created only a short time after the U.S. overcame a similar influenza outbreak.
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South Korea has waived all duties on all U.S. shell eggs and processed egg products – never before shipped to that country – through June 2017 in order to facilitate shipments.
Dive Insight:
Avian flu has long been a serious issue for the poultry and egg industries because it can lead to severe disease with high bird mortality rates. Consumer and activist demand for free-range and cage-free chickens, terms which still need clearer definitions that the USDA’s current explanations, has exacerbated the issue.
Failing to take appropriate precautions against the flu can produce a situation where a valued commodity is too pricey for customers to afford. South Koreans traditionally use many eggs during the upcoming Lunar New Year celebration period. After the massive culling of hens, a Seoul street food vendor spoke with dismay to a reporter for Bloomberg Markets, noting that nearly everything on her menu requires eggs.
After slipping from a high of 258.1 in 2006 to lows of 248.3 in 2008 and 248.4 in 2009, per capita egg consumption in the U.S. – representing “total egg production less exports, plus imports, divided by the total population,” as explained by the American Egg Board – has been steadily climbing, to 267.4 last year.
An avian flu outbreak here in 2015 created a shortage, skyrocketing prices and leading many manufacturers to find alternatives for their products. As the egg supply rebounded, demand was a bit slower to come back, leading the USDA to a $11.7 million bailout for the surplus last year. Supply and demand are gradually coming back together, but in terms of price, eggs are still one of the most volatile products in the grocery store.
By shipping some of the current excess to South Korea, U.S. egg producers may see more price stability. In reverse, this export/import approach also could help producers here in the event of another avian flu outbreak.
Bird flu has been found in migratory birds, some backyard, commercial poultry flocks and, most recently, in felines in shelters in three of New York City's five boroughs. On January 13, all 500 cats in the city's shelters were quarantined in an effort to contain the problem. If chickens are roaming, they have a greater chance of interacting with animals infected with the disease.