Industry Outlook | Hurricane Katrin...
Industry Outlook
Hurricane Katrina and Avian Influenza Cast Shadow Over Exports And Imports
The after effects of Hurricane Katrina are still unfolding. But one thing is certain — U.S. agricultural exports and imports are going to be affected and consumers are likely to feel the effects at the grocery store.
Agricultural export statistics from 2004, record that meat and livestock products exported from New Orleans were destined for El Salvador, the European Union, Guatemala, Honduras, Hong Kong, Jamaica, Mexico, Russia, Trinidad, and Turkey. Poultry and poultry products out of New Orleans went to China, Georgia, Ghana, Guatemala, Haiti, Honduras, Hong Kong, Israel, Jamaica, Romania, Russia, Sierra Leone, Turkey and Zaire.
About 70 percent of all U.S. poultry exports to Russia are shipped out of the affected ports (Mobile, Gulfport, New Orleans and Pascagoula). Poultry shipments to Russia are limited to approved plants, warehouses and cold storage facilities which creates significant logistical problems in moving product through other channels. Poultry stocks in cold storage in the region have also been heavily affected and exporters and traders are still accessing the volume of lost product. The Russian port of St. Petersburgrepresents more than 70 percent of all U.S. poultry meat imports.
The gulf ports account for 71 percent of corn, 65 percent of soybean, 22 percent of wheat and four percent of cotton exports. Wheat prices are already off about 15 cents per bushel due to the storm. For caffeine addicts, it is worth noting that New Orleans warehouses hold about a quarter of the raw coffee destined for the U.S. market. Barge traffic along the Mississippi has also been disrupted and will remain so for a long period of time.
Demand for meat and poultry has also been affected by the closure of restaurants in the affected area — approximately 200 McDonald’s, 120 Burger Kings, 40 AFC Enterprises and 60 Sonic.
Poultry production in Asia has also been hit by the avian influenza (AI) outbreaks. Hundreds of thousands of birds have been harvested in attempts to control the spread of the disease. AI continues to move westward and concern in Europe is growing.
The recent poultry production problems in Asia, pig disease in China, and Hurricane Katrina, make it difficult to analyze where the protein market is going in the next few months. Distribution problems and higher energy costs, however, will be felt by consumers in the U.S. and overseas.
Industry Outlook
Hurricane Katrina and Avian Influenza Cast Shadow Over Exports And Imports
The after effects of Hurricane Katrina are still unfolding. But one thing is certain — U.S. agricultural exports and imports are going to be affected and consumers are likely to feel the effects at the grocery store.
Agricultural export statistics from 2004, record that meat and livestock products exported from New Orleans were destined for El Salvador, the European Union, Guatemala, Honduras, Hong Kong, Jamaica, Mexico, Russia, Trinidad, and Turkey. Poultry and poultry products out of New Orleans went to China, Georgia, Ghana, Guatemala, Haiti, Honduras, Hong Kong, Israel, Jamaica, Romania, Russia, Sierra Leone, Turkey and Zaire.
About 70 percent of all U.S. poultry exports to Russia are shipped out of the affected ports (Mobile, Gulfport, New Orleans and Pascagoula). Poultry shipments to Russia are limited to approved plants, warehouses and cold storage facilities which creates significant logistical problems in moving product through other channels. Poultry stocks in cold storage in the region have also been heavily affected and exporters and traders are still accessing the volume of lost product. The Russian port of St. Petersburgrepresents more than 70 percent of all U.S. poultry meat imports.
The gulf ports account for 71 percent of corn, 65 percent of soybean, 22 percent of wheat and four percent of cotton exports. Wheat prices are already off about 15 cents per bushel due to the storm. For caffeine addicts, it is worth noting that New Orleans warehouses hold about a quarter of the raw coffee destined for the U.S. market. Barge traffic along the Mississippi has also been disrupted and will remain so for a long period of time.
Demand for meat and poultry has also been affected by the closure of restaurants in the affected area — approximately 200 McDonald’s, 120 Burger Kings, 40 AFC Enterprises and 60 Sonic.
Poultry production in Asia has also been hit by the avian influenza (AI) outbreaks. Hundreds of thousands of birds have been harvested in attempts to control the spread of the disease. AI continues to move westward and concern in Europe is growing.
The recent poultry production problems in Asia, pig disease in China, and Hurricane Katrina, make it difficult to analyze where the protein market is going in the next few months. Distribution problems and higher energy costs, however, will be felt by consumers in the U.S. and overseas.