What is the impact, on US and Canada, from HPAI and the resulting bans on US chicken by CFIA?
Numerous reports show a devastating impact on the US poultry industry. One third of US egg layers were lost to HPAI, by either disease or culling to stop the spread of the disease. Meatingplace reports that 5 major broiler chick hatcheries are breaking eggs (ie. destroying their eggs) rather than hatching them for a market that no longer exists.
At the height of the HPAI outbreak, 57% of US broiler production was banned from Canada due to HPAI.
As of Sept. 1st, 2015 CFIA updated its ban on all chicken associated with 8 remaining US States, removing California, Idaho, Oregon and Washington as being clear of HPAI (Highly Pathogenic Avian Influenza). Today, 34.6% of the US broiler production remains banned from Canada.
It's not just Canada that has banned US chicken.
The export market for US broiler chickens has disappeared due to HPAI bans on US chicken exports.
JOC.com reports that 20% of the prior US broiler chicken export market has disappeared, mainly due to HPAI. Global Meat News reports that this loss is worth $390 million per year. Ouch!
Businesss Insider reports that total bans of US chicken (whether the State was HPAI infected or not) have been imposed by China, South Korea and Angola, whose markets were valued at nearly $700 million last year. Double Ouch!
All it takes is one HPAI biohazardous-ignorant idiot to cause a total ban for the entire nation. Triple Ouch!
Canada is part of that ban on US chicken. Table 1 shows 2014 data for the US broiler industry, and the impact of the ongoing Canadian ban.
The CFIA ban includes eggs, live birds, meat, feathers, and all non-cooked or non-commercially sterilized chicken products that originate or are processed in the banned US States. That's pretty comprehensive. How will the US broiler industry respond to this ongoing US ban by CFIA?
|Figure 1: Map showing the CFIA ban on US chicken due to HPAI. Green States have been removed|
from ban as of 2015-09-01 as they are now HPAI-free. The red States are still banned as of 2015-09-01.
NRDC reports that ten large companies, referred to as "Integrators" (eg. Tyson, Perdue, Pilgrim, etc.), produce more than 90 percent of the USA poultry. The individual farmers enter into a contract with one Integrator to supply them full grown chickens ready for slaughter. The Integrator supplies to each farmer the day old chicks, feed, medicine, and expertise; and audits the farmer's performance to ensure it meets the Integrator's contractual requirements.
This Blog previously reported that 85% of all HPAI infections in the USA occurred at CAFO chicken factories, in spite of the vast majority of chicken flocks being small non-CAFO producers (ie. Small Flockers). I also previously reported that there are strong reasons to believe that CAFO chicken farmers are shooting themselves in the foot, causing or contributing to their HPAI infections due to poor biohazardous protocols by CAFO chicken factories.
Therefore I suggest the following lessons for Canada's Chicken Mafia:
- Biohazardous risks have severe economic impacts that go way beyond just the few who become infected. Everybody suffers, even the nation as a whole.
- Canada's CAFO-based Chicken Mafia is its own worst enemy. CAFO chicken factory technology is significantly flawed for biohazardous risks, and many other reasons. CAFO needs to be abandoned, or dramatically improved.
- Since Canada's Chicken Mafia is content to rape the Canadian public on an ongoing basis, and mostly ignores world export opportunities, the impact of HPAI infections today is mostly limited to the farms that become HPAI infected. If Canada, through TPP or otherwise, starts to export considerable quantities of chicken, the risk exposure for Provinces (or all of Canada) dramatically increases due to the resulting export ban for an entire region, Province, or Canada-wide.
- .Biohazard risks (ie. HPAI infections and all similar incidents) cause an entire industry to be no better than its weakest link. That means Canadian governments (both Federal and Provincial) and the Chicken Mafia SM bureaucracy need to focus their efforts first and foremost on the weakest links, identifying them, helping them improve, or mitigating their threats to the entire industry by weeding them out of the industry.
- Spent chicken importers who cheat on the SM system (ie. pretend it's spent fowl when they're really broilers, to save the 285% import duties) don't play by the rules, they are motivated by the almighty dollar. If they are willing to mis-label chicken as spent fowl, they are likely willing to mis-label as to the State of origin or processing; thereby bypassing CFIA's HPAI ban. If a producer is in a banned area, they may be willing to take a significant price cut if someone is able to spirit away his banned chicken in the middle of the night; thereby adding additional economic incentive to the Chicken Cheater. This cheating puts everybody at risk, but Canada's Chicken Mafia and their friends are not concerned about the risk, as the profits are too great, and their personal risk exposure is significantly compensated by the Federal Government, the Chicken Mafia, and/or others. We can therefore expect to see some significant movements and possibly some significant "incidents" on spent fowl and IREP (Import for Re-Export) chicken while this CFIA ban is in place for US chicken from these 8 remaining States.