Recent outbreaks of highly pathogenic avian influenza could cost nearly $1 billion in the economies of Minnesota and Iowa, the two states hit hardest by avian influenza, agricultural economist said this week. Iowa, the United State’s leading egg producer, has lost about 20 million laying hens, which is more than a third of the total. Minnesota, the top turkey state in the nation, has lost more than 8 million birds.
To date, the U.S. Department of Agriculture has confirmed that avian influenza has claimed nearly 37 million birds in 15 states. However, that number will ultimately grow much larger because additional farms in Iowa and Minnesota have recently tested positive for avian influenza and these outbreaks have not yet been counted.
Minnesota’s estimated loss of nearly $310 million in poultry production includes sales losses to feed suppliers, trucking companies, and processing plants, said Brigid Tuck, a senior economic impact analyst with the University of Minnesota. The loss of sales of poultry alone is estimated to be at $114 million.
In Iowa, the estimated economic loss from egg production is estimate at over $600 million based on figures from economists as Iowa State University. Egg producers generate more than $2 billion a year in economic activity and the estimate is based on a loss of a third of the flock. Meanwhile, additional losses were reported this week.
Several economists said that the estimates are based on annual figures and the exact economic impact will not be known until it is determined how long it takes to declare barns virus-free and safe for the restocking of birds.
The U.S. Department of Agriculture, in a monthly report released on Monday, said national exports of turkey meat will fall 10 percent, eggs about 1.5 percent, and chicken meat exports, as a result of national bans by such countries as China, Russia, and South Korea, will fall 6.8 percent this year.
