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 Producers in the Province of Hubei are now forced to euthanize flocks since travel restrictions and disruption of supply chains have seriously impacted delivery of feed, packing of eggs, processing of broilers and transport of product according to recent press reports. Hubei Province produces 10 million broilers per week in addition to numerous ducks and is a major egg producer supplying a population in excess of 50 million.
Commercial hatcheries and integrated broiler producers in addition to family-operated farms are impacted. It is understood that inter-provincial transport of pork has been curtailed in accordance with quarantines imposed by the central government. In the large cities under lockdown, families can only obtain food essentials, if available, every other day with a designated family member collecting items from stores or municipal distribution points.
The U.S. industry is indirectly affected as handling of imports has slowed considerably due to the extended Lunar New Year coupled with travel restrictions. It is understood that as many as 350 containers of feet are awaiting transshipment from ports to their destinations.
With bans on travel and disinclination of citizens in large cities to make use of public transport, quick service restaurants have experienced a collapse in patronage that will ultimately reflect in financial performance and repatriations of dividends to the U.S.
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China port congestion due to coronavirus epidemic
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A further complication is that China in all probability will delay importation of agriculture commodities from the U.S. White House National Economic Council Director, Larry Kudlow confirmed that commitments under Phase-One of the U.S.-China Trade Agreement may not be met in the first quarter. It is hoped that following control of Wuhan Coronavirus that demand for agricultural products will increase and that quantities specified in terms of the Phase-One Agreement will be fulfilled in 2020.