Meat+Poultry - June 2020 - 59

entry point - quick-service and fast-food. I think that
segment will be fine. But they'll likely be slower than
what we've seen before."

SHIFTING TRADE
The United States began exports of US poultry to
China this year. But shipments have slowed due to
the coronavirus. Officials involved with US-China
trade negotiations have expressed concerns that the
pandemic may have complicated implementation
of the phase one trade agreement the two countries
signed in January.
McCracken said political tensions have mounted
across all trade markets, but China will be relying
on imported animal proteins from around the
globe for the next few years at least because of the
country's domestic protein shortages.
"Relative to the broiler industry, it's a very small
market for the US - obviously, until this year, it was
zero," McCracken said. "They have been buying a lot
of paws and wing tips this year, and that has been
incremental to the broiler industry. If something
were to go wrong, probably for the broiler industry,
it would be a net benefit. The thought there is if they
somehow fell short of their trade commitments and
didn't buy as much grain or meal or oilseeds, that
could lower our feed costs more than the value of
those lost export sales."

OTHER ANIMAL DISEASES
Outbreaks of animal diseases are a persistent threat
to global protein markets. A new wave of avian
influenza swept across the Northern Hemisphere
during the winter while the constant threat of African
swine fever in Asia and Eastern Europe continued to
drive volatility in global markets for both red meat
and poultry.
In March, as coronavirus infections were rising
in the United States, the USDA's Animal and Plant
Health Inspection Service (APHIS) confirmed the
presence of highly pathogenic H7N3 avian influenza
in a commercial turkey flock in Chesterfield County,
SC. It was the first confirmed outbreak since 2017.
APHIS said the outbreak strain mutated from
a low pathogenic strain that was found in poultry
in that area. In March, routine testing uncovered
the presence of low-pathogenic avian influenza
(LPAI) on three farms in Union and Anson counties
of North Carolina which are located on the North
Carolina-South Carolina state line, adjacent to
Chesterfield County. The flock in South Carolina
and 11 total confirmed and presumptive positive
turkey flocks in North Carolina were culled
www.meatpoultry.com | 06.20 | MEAT+ POULTRY

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