Poultry industry mostly spared in recent floods

Recent floods in Arkansas and Missouri have affected operations at one poultry plant in each state, but the situation could have been much worse, industry leaders say.

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Rombough, Freeimages.com
Rombough, Freeimages.com

Recent floods in Arkansas and Missouri have affected operations at one poultry plant in each state, but the situation could have been much worse, industry leaders say.

Two poultry plants affected

Marvin Childers, president of The Poultry Federation, which represents the industry in Arkansas, Missouri and Oklahoma, confirmed that Peco Foods’ new poultry plant in Pocahontas, Arkansas, and Tyson Foods’ poultry plant in Noel, Missouri, were affected.

In the case of Peco Foods, he said, the biggest problems were those created with workers’ abilities to get to work at the plant amid the flooding in the area. Operations were slated to return as regularly scheduled on May 8.

Meanwhile, Tom Hayes, president and CEO of Tyson Foods, said during a quarterly earnings call for the media that its facility in Noel was “affected to a degree,” although he said the company was unable to determine any lasting impact.

Grower operations appear to be spared

Childers, whose office is headquartered in Arkansas, said that as of May 8 the Poultry Federation had not been notified about any losses of birds, but he did say that there were poultry houses where the floodwaters “got right to the door.”

Hayes said that Tyson’s growers also appeared to have avoided any significant losses.

“Our growers have been pretty-well protected, but I think that it was certainly something we were very concerned about as the storms were unfolding,” said Hayes. “Hopefully we will come through it and everybody will be either in good shape or rebuilding with our support.”

Crop damages

Preliminary estimates for damages to crops, however, tell a different story.

Childers referred to a press release from the University of Arkansas, where the university’s System Division of Agriculture estimated that the state’s crop flood losses were around $64.5 million.

More than half of those losses were experienced by rice farmers, according to university estimates, and another $2.21 million worth of damages were suffered by cotton producers.

But producers of key poultry feed ingredients like corn and soybeans were also deeply impacted. Soybean growers experienced about $14.27 million in damages, while corn producers were hit to the tune of about $11.68 million.

Broken down by acreage, about 83,200 soybean acres were lost and about 47,900 corn acres were lost.

U.S. agriculture secretary assesses damage

On May 7, U.S. Secretary of Agriculture Sonny Perdue came to Arkansas. He joined Gov. Asa Hutchinson and members of Arkansas’ congressional delegation, for a flyover to see the flooding, followed by a press conference.

“The secretary was very, very interested,” Childers said. “We just appreciate him being here and seeing it first-hand.”

Perdue has vowed that once he gets a more detailed damaged assessment, he will expedite a disaster declaration that would offer financial assistance to affected producers, according to a USDA Radio News report.

 “They will have everything that’s legally possible at the disposal from the USDA to deal with the tragedy,” said Perdue.

Tyson provides disaster assistance

In the Tyson Foods media call, Gary Mickelson, Tyson Foods’ senior public relations director, said that the company provided disaster relief in the form of feeding people in both Noel, but also in Dexter, Missouri, where Tyson operates a poultry plant.

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