Washington - U.S. Agriculture Department reduced estimated U.S. exports of meat and poultry in 1998, mostly because of the worsening economies of Southeast Asia and the outbreak of "bird flu" in Hong Kong.
Estimated U.S. exports of beef in 1998 were cut to 1.98 billion lbs from USDA's previous forecast of 2.04 billion lbs, while pork exports were trimmed to 990 million lbs from 1.1 billion lbs. USDA also reduced its forecast for broiler exports to 4.75 billion lbs from a previous estimate of 4.85 billion lbs.
"Poor economic conditions in Japan and Korea and the dollar's strength against their currencies are hurting U.S. beef, pork and poultry meat exports," the USDA said in its monthly supply and demand report. "China, including Hong Kong, is an important market for U.S. poultry meats and the bird flu in Hong Kong is expected to reduce U.S. poultry meat exports."
Orders for U.S. poultry have plunged in recent weeks since the outbreak of a rare flu that scientists believe may be transmitted from chickens to people, and millions of chickens have been destroyed on the order of the Chinese government. Last year, Hong Kong bought more than $400 million of U.S. poultry.
USDA said its latest monthly forecast calls for a five percent year-over- year decline in U.S. red meat exports and about a one percent decline in poultry exports.
The weakening Asian demand for beef means that other exporters will probably ship more beef to the United States as the only alternative, the USDA said.
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