Bird flu and global poultry supply chain impact

An article in the Wall Street Journal (March 22, 2017) titled “Bird-Flu Outbreak Brings Pain for Poultry Producers in Asia”, describes the emerging cases of H7N9 bird flu in China, with over 140 human deaths in China this year alone, and its impact. Poultry farmers in China are dumping product so that prices have dropped 13% and imports 24%.  But markets in South Korea have seem price increases due to low supplies. With China banning US imports over avian flu concerns, Thailand is expected to benefit from China market growth, with Chinese imports expected to grow by 10%, making it the second largest importer of poultry (Mexico is the largest).  How should US poultry producers manage the volatility caused avian flu ? With large stocks culled across the world (30 million in South Korea alone), how should producers plan their chicken inventory to optimize performance ?

About aviyer2010

Professor
This entry was posted in Capacity, chicken, competitiveness, consumer, Cost, disruption, Global Contexts, Supply Chain Issues, Uncategorized and tagged , , , , . Bookmark the permalink.

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