Shares for the three largest poultry companies in the United States rose on October 28, following reports that China’s ban on U.S. poultry products could come to an end.
A weekend report from Reuters stated that officials from the United States and China are near an agreement on trade talks, that could mean China would lift its ban on U.S. poultry products, while the U.S. would import cooked poultry and catfish products from China.
China’s ban has been in place since 2015 over concerns about the spread of highly pathogenic avian influenza (HPAI). However, according to reports from the World Organisation for Animal Health (OIE), all HPAI cases in the U.S. have been resolved.
The three largest poultry companies in the United States – Tyson Foods, Pilgrim’s Pride and Sanderson Farms – are all publicly traded. Tyson is listed with the New York Stock Exchange, while the other two companies are listed with NASDAQ.
According to an ArkansasOnline report, Tyson Foods shares rose 4.6% following the release of the news report. Shares of Pilgrim’s Pride rose 8%, while Sanderson Farms shares rose 16%.
Demand for chicken in China has risen in recent months as the country, which is also the world’s largest producer and consumer of pork, has been hit hard with an outbreak of African swine fever (ASF). Reports have revealed that as much as 50% of the Asian country’s pig herd has been lost as a result of ASF.
Prior to the trade ban, China had been a major export destination for poultry from the United States.
In May, Joe F. Sanderson Jr., CEO of Sanderson Farms, said the company had already received inquiries about product availability to be shipped to China, should the ban be lifted. He made those statements during the BMO Capital Markets Farm to Market Conference.