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International Egg and Poultry Review

by 5m Editor
15 March 2006, at 12:00am

By the USDA's Agricultural Marketing Service - This is a weekly report looking at international developments concerning the poultry industry, this week looking at the market in Romania.

International Egg and Poultry Review - By the USDA's Agricultural Marketing Service - This is a weekly report looking at international developments concerning the poultry industry, this week looking at the market in Romania.

Romania

February 13, 2006 the Romanian government (GOR) passed the regulation, Government Decision 200/2006, approving Romania's new import schedule, which becomes active February 16, 2006 through December 31, 2006. Tariff rates for chicken halves and quarters (HS 02071420) and chicken leg halves and quarters (HS 02071460) have been temporarily increased to 70% (from 45% in 2005). The government is hoping the new regulation will help increase domestic sales and allow local producers to invest in improved biosecurity measures. However AgBucharest believes the impacts of AI have already been felt by Romania and do not expect the new trade measures to reduce consumer reluctance to purchase poultry.

The decision comes in light of the recent outbreaks of highly pathogenic Avian Influenza (HPAI) in Romania, which of the 31 outbreaks of AI detected in backyard poultry flocks (no commercial poultry operations) since October 7, 2005 only 6 are still active as of February 17, 2006. In total, about 170,000 birds have been culled with the GOR compensating producers about $1.4 million so far. Initially the European Union (EU) banned Romanian poultry meat imports, but recently agreed to regionalize Romania, limiting the bans to AI affected counties in the south, east, and northeast; however Romania's major poultry producing and exporting entities are located in these counties, so no significant recovery on poultry exports is expected in 2006.

Trade figures show Romanian poultry imports dropped 30% to 35% each month in the last trimester of 2005 starting in October, as a result of the presence of AI in the country. In 2005, Romania imported 160,000 metric tons (MT) of poultry meat, of which the US supplied 58% (93,000 MT). The bulk of US exports (93%) to Romania fell under the two categories under the temporary tariff rate increase. The amount of US poultry meat exported to Romania for the first eight months of 2005 averaged about 8,000 MT per month, dropping 56% in December to 3,500 MT per month.

According to the Romanian Poultry Producers Association, the domestic poultry sector recorded losses of $41 million during the last trimester of 2005, due to a sales price drop (41%), delays in populating farms (23%), and storage costs (14%). Other losses, which generated $1.5 million, were as a result of export restrictions (22%), slaughter delays and slaughter disinfection (22%). Total losses grew to $15.6 million in January of 2006.
Source: USDA FAS/OIE/Promed/news wires

To view the full report, including tables please click here

Source: USDA's Agricultural Marketing Service - 14th March 2006

5m Editor