International Egg and Poultry Review

US - By the USDA's Agricultural Marketing Service - This is a weekly report looking at international developments concerning the poultry industry, this week covering the Fifth Ministerial Conference, Dutch Avian Flu Costs.
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International Egg and Poultry Review - By the USDA's Agricultural Marketing Service - This is a weekly report looking at international developments concerning the poultry industry, this week covering Fifth Ministerial Conference, Dutch Avian Flu Costs.

Fifth Ministerial Conference Ends Without Agreement

Mexican Trade Minister Luis Ernesto Derbez formally closed the Fifth Ministerial Conference on September 14, 2003. The meeting had collapsed in mid-afternoon over ongoing deep divisions among Members and closed without agreement on a Ministerial Text. According to the one page Ministerial Statement, a meeting of the WTO General Council at Senior Officials level will be convened no later than December 15, 2003, “to take the action necessary at that stage to enable us to move towards a successful and timely conclusion of the negotiations. We shall continue to exercise close personal supervision of his process.”

WTO talks to free up world trade collapsed when delegates from Africa, the Caribbean and Asia walked out of the talks. Those countries rejected new rules on investment and rich and poor states clashed on farm reforms. According to the WTO, as of April 4, 2003 there were 146 member countries. Cambodia and Nepal membership was sealed on September 11 and they are set to become the WTO's 147th and 148th members, 30 days after they ratify their agreements. The current 146 member countries of the WTO were not able to bridge large differences over how quickly rich countries should lower payouts for farm subsidies and developing countries were unwilling to negotiate new rules for foreign investment and other issues.

Agriculture had been expected to be the main issue. In July, 2003, 25 members of the WTO met in Montreal to bridge gaps over agriculture. However, in Cancun ministers spent little time on agriculture and instead discussed the Singapore issues – cross-border investment, competition policies, trade facilitation and transparency in government contracts. Developing countries wanted an agreement on agricultural issues before addressing the Singapore issues.

Many countries are now expected to actively pursue bilateral trade talks with individual countries. The United States wants a free-trade agreement stretching from Canada to Chile, however, the failure of talks in Cancun could severely complicate negotiations at the November ministerial negotiations for the Free Trade Area of the Americas (FTAA). Brazil led a group of middle income countries such as Mexico, Korea, China and India, that stood up to the United States and the European Commission.

U.S. Senator Chuck Grassley warned: “The US evaluates potential partners for free trade agreements on an ongoing basis. I’ll take note of those nations that played a constructive role in Cancun and those that didn’t.”

The WTO was formed in 1995 as an organization to negotiate and adjudicate trade agreements. A World Bank report “Reciprocity in Free Trade Agreements,” listed 64 Free Trade Agreements from January 1, 1983 though December 1, 1999.

Sources: Bridges Weekly Trade News Digest, World Trade Organization, USDA/FAS, various news wires

Dutch Avian Flu Costs

The avian influenza epidemic is estimated to be at least E750 million by the Agricultural Economics Institute (LEI). Preliminary figures indicate the loss of income from the sales of poultry and eggs was E500m. The culling of about 30 million hens and broilers cost E270m, of which the EU will have paid half. Ancillary trades have incurred losses and some export companies may not survive. The Netherlands has been the leading exporter of eggs (over 7000 million a year) and a large part of this trade may be lost. This could double the sector’s losses.

Dutch Poultry Industry in 2002, in metric tons
Netherlands European Union
Egg Production 547,000 5,173,000
Chicken meat 635,000 6,431,000
Turkey meat 43,000 1,827,000
Duck meat 15,000 398,000
Source: AGRI.D.2

Production Figures for Dutch Poultry Industry
No. of Establishments No. of birds/eggs
Egg Sector
Parent stock farms 55 600,000
*Hatcheries 5 88,000,000
Rearing pullets 400 28,000,000
Laying hens 2,000 31,000,000
**Egg packing centers 235 10 billion
Meat Sector
Parent stock 530 6,000,000
Hatcheries 28 580,000,000
***Broilers 1,200 50,000,000
Slaughterhouses 46 NA
* Number of eggs = expressed in hatched eggs
** Number of eggs produced (<2.5 billion table eggs)
*** Number of broilers present (one cycle)
The national poulty stock amounts to some 100 million birds at any given moment
Source: LNV

Source: International Egg Commission, European Commission

French Farmers Compensated for Heat Loss

French pig, poultry and rabbit farmers could receive some reimbursement for losses during the recent heat wave. Around 5 million chickens and turkeys died in August due to the heat. The impact on chicken production will probably be less than a 5,000 MT drop in the 985,000 MT production estimate. Most poultry production is located in the western part of France, where the heat and drought were not so severe. Production in affected areas should resume in a short time. Production costs will probably increase by a few cents per kilo, plus feed costs are likely higher due to the short grain crop in France. While some farmers may have had insurance to cover losses due to drought, some insurance policies did not cover losses due to heat stoke.

Source: USDA/FAS, news wires

To view the full report, including tables please click here

Source: USDA's Agricultural Marketing Service - 23rd September 2003.

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