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on October 24, 2017

Poultry trade bans: understanding the economic impact

Regional restrictions rather than blanket bans can be preferable for importers and exporters when poultry diseases disrupt trading relationships.

After a disease outbreak such as avian influenza, countries may impose trade bans, and they can be costly.

Read the entire report about the economic impact of poultry trade bans exclusively in the November issue of Poultry International.

If a ban is too broadly applied, then concerns are usually raised by the country that has lost its export markets, but the country instituting the ban may also have a price to pay, particularly if it sees its other sources of supply disrupted.

Take for example, South Korea and its imports of chicken meat and eggs from the U.S., which were halted in their entirety in response to outbreaks of avian influenza.

While Brazil may be the largest exporter of poultry meat to South Korea, the U.S. is also a major supplier, and where processed eggs are concerned, it is the main overseas source of supply.

In 2014, the last full year without any highly pathogenic avian influenza (HPAI) restrictions in place, South Korea imported US$122 million in U.S. poultry products, including eggs. The U.S. represented a significant source of supply, accounting for a little over 10 percent of the imports of chicken meat and eggs combined.

Losing a major supplier in its entirety can cause major disruption, but for the South Korean market, problems have been compounded by also having to deal with issues much closer to home.

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