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Strong poultry numbers propel industry into 2002
MISSISSIPPI STATE -- Mississippi's final poultry value numbers for 2001 reveal a much better year than originally predicted in December.
The U.S. Department of Agriculture's poultry production and value summary for 2001 released in April showed the industry's value was $1.66 billion, about $120 million more than economists predicted at year's end for Mississippi. The final figures are well ahead of the previous year's $1.38 billion value.
"Mississippi had a 3 percent increase in broiler numbers, and prices reported by USDA were almost 17 percent higher than in 2000," said Tim Chamblee, associate professor of poultry science at Mississippi State University. "Exports in 2001 were much stronger than in 2000, and better than we anticipate seeing this year because of Russia's temporary ban on U.S. poultry this spring."
Mississippi produced 765 million broilers, 25 million more than in 2000.
Chamblee said foreign demand was an additional factor in the 2001 increases. In 2000, the United States exported 4.9 billion pounds of broiler products, and in 2001, producers exported 5.6 billion pounds. However, projected broiler exports for 2002 have been lowered to 5.4 billion pounds.
"U.S. producers sent 2.3 billion pounds of broilers to Russia in 2001, which was 37 percent of the total U.S. broiler exports," Chamblee said. "The ban this year lasted more than a month, and Russian imports did not resume at previous levels immediately after it was lifted on April 15."
Russia imposed the ban on U.S. poultry after the United States imposed tariffs on steel imports, an action that could cost Russia millions of dollars. Russia cited concerns over antibiotic use and salmonella in poultry produced in the United States as the reasons for the ban.
Chamblee said domestic consumption for 2000 and 2001 was just under 77 pounds of broilers per person. Consumption per person is expected to increase to 78.5 pounds this year and 79 pounds in 2003.
Chamblee said Mississippi's egg production remained level at around $1.3 million. The state ranks fourth nationally in broiler production and 16th in egg production. He said egg production should not change much in 2002.
"The Russian ban should not have a pronounced effect on the number of broilers produced in Mississippi this year. Poultry companies are producing birds for their domestic markets, which typically demand white meat," Chamblee said. "Leg quarters make up the bulk of the export market.