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February 14, 2020 | FBN Insights | Kevin McNew

Coronavirus Reroutes US Chicken Shipments

Coronavirus Reroutes US Chicken Shipments Destined for China

Ships carrying chicken from the US to China are being diverted to ports in Hong Kong, South Korea, Taiwan and Vietnam due to the coronavirus.   

According to Reuters, an estimated 300 to 400 refrigerated poultry containers that are currently in transit are being diverted. 

Chinese ports have run out of space for refrigerated containers, which must be plugged into electrical outlets once they are offloaded to keep frozen meat and other food products cold.   

About 80% of the product are chicken feet, while the remainder is chicken meat and turkey products.

Currently shipments of medical supplies and pork are being prioritized.  

China lifted a nearly five year ban on US poultry imports in November 2019.  

FBN’s Take On What It Means For The Farmer: We believe that delayed containers of US chicken imports is interesting and can be the “tip of the iceberg” when it comes to possible economic ramifications of the coronavirus in China. With the coronavirus only two months old, we are monitoring how the virus is impacting the US agricultural trade with China.                     

       

India Offers to Lower Tariffs on US Dairy and Poultry   

India has offered to partially open up its poultry and dairy markets in a bid for a limited trade deal when President Donald Trump visits the country this month.

In 2019, Trump suspended India's special trade designation that dated back to 1970s.

The United States is India's second-largest trade partner after China.

India is the world's largest milk producing country.

India restricts dairy imports to protect the 80 million rural households involved in the industry.

India has offered to cut tariffs on chicken legs from 100% to 25%. US negotiators want that tariff cut to 10%.

FBN’s Take On What It Means: We believe that reducing tariffs on US leg quarters and dairy can enhance the US poultry export program. Increased demand for poultry exports can help increase the demand for broilers which can be positive for US feed grain demand.                                                                          

                                                                                                                                                                      

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