As the nation’s top chicken-producing state, Georgia has reaped the benefits of a second consecutive year of record U.S. poultry exports.
In 2014, exports of U.S. poultry - including Georgia chicken - reached an all-time high of 4.1 million metric tons, 0.4 percent ahead of 2013, while value fell 0.3 percent to $5.501 billion, the second-highest ever.
Shipped to more than 130 countries, Georgia’s chicken exports were an estimated $703 million last year. The state’s chicken production accounts for more than 40 percent of its agricultural economic activity.
But it was actually an unusually tough year for Georgia chicken exports, and the way 2015 is looking, it could be a lot tougher.
The record came despite losing a top market – Russia, thanks to its August embargo on Western agricultural imports, a response to U.S. sanctions over Russia’s Ukraine activities. Had this happened a few years ago, when Russia accounted for more than 40 percent of our exports, the impact would have been disastrous. But because our industry has diversified its exports, the embargo barely caused a ripple.
Exports account for more than 20 percent of all U.S. chicken meat production. Although reliable state data aren’t readily available, anecdotal evidence suggests Georgia’s export percentage is significantly higher; numerous exporting companies are located in Atlanta.
Georgia is also home to the USA Poultry & Egg Export Council, headquartered in Stone Mountain and founded in Tucker 30 years ago. During its existence, exports have grown steadily. All the while, the global protein trade has become increasingly complex, making it necessary for the Council to evolve from a promotional organization to one that focuses more attention on government policies affecting trade here and abroad.
Our domestic staff and 14 international offices spend as much of their time working to keep markets open and opening new markets as they do promoting U.S. poultry and eggs.
Though I’m an optimist, reaching another record in 2015 may be a challenge. Besides Russia, three other major markets – China, Korea, and South Africa – have also banned our imports because of recent detections of highly pathogenic avian influenza in several western states. About 30 countries have similar bans, either on the affected states or the whole country. China and Korea alone accounted for $250 million in U.S. poultry exports last year.
Our industry is also grappling with a weakening global economy, unfavorable currency values against the U.S. dollar, protectionist measures in Angola and Ghana, two important African markets and an ongoing anti-dumping case against U.S. poultry in South Africa.
There are bright spots. Cuba, our fifth-leading export market for chicken, could become bigger if the trade embargo is lifted. Mexico and Canada account for $2 billion of our poultry exports and continue growing. Fortunately, our industry is becoming more diversified and less-dependent on individual markets.
While we trumpet 2014 as an apex year, we can’t promise a repeat. Although the industry is historically cyclical, exports have been somewhat immune from the peaks and valleys. We may be facing a perfect storm of factors that could make 2015 a forgettable year.
Fortunately, this comes during a time of strong domestic consumption. With beef prices becoming almost unaffordable for many, chicken consumption is growing. In recent years, exports have been good for our industry, but perhaps this is the year for our domestic market to take the lead while global forces realign.
Poultry exporters have grown resilient and adaptable to constant global changes. And even if 2015 fails to become another entry in the record books, chances are still good that a growing global population and its hunger for protein will again bode well for U.S. poultry exporters.
James H. Sumner is president of the USA Poultry & Egg Export Council in Stone Mountain.
