According to news reports including Delmarva ABC-Affiliate Channel 47, Allen-Harim will depopulate approximately 1.5 million broilers in succeeding weeks. This action results from a slow rate of processing due to a claimed 50 percent absenteeism at the major Allen-Harim 1st-processing plant. The company contracts with 220 farmers who were informed of the intended action by letter on April 8th. Allen-Harim has also reduced egg settings and chick placements although the result will only be evident in six and ten weeks time respectively.
Spokespersons for Perdue Farms, Mountaire Farms and Tyson Foods operating on the Eastern Shore have emphasized that they have no plans to depopulate in the immediate future.
Allen-Harim is ranked 19th among U.S. broiler integrators and processes approximately 1.6 million birds per week at an average live weight of 6.2lbs.
The announcement elicited the usual condemnation of intensive livestock production by organizations including the Socially Responsible Agricultural Project. The spokesperson for the organization, Maria Payan noted without substantiation "this vertical system does not have the ability to respond efficiently. We are seeing problems from the growers; workers being protected and impacts on public health and the environment". Ms. Payan fails to acknowledge that the integrator-contractor model has provided a secure livelihood to Delmarva growers over at least eight decades and they will not suffer during this transitory event.
A constant critic of vertical integration, Craig Watts, an aggrieved ex-grower for Perdue noted "disposal of birds may present problem for growers. He commented "the highly consolidated meat supply chain is vulnerable to major disruptions". On balance it appears that inability to process broilers in barns is less an industry problem but results from circumstances inherent to Allan-Harim. A claimed 50 percent reduction of a workforce of approximately 1,000 plant workers due to COVID-19 implies 500 cases. This far exceeds published prevalence rates for any other U.S. red meat or poultry plant or even the Diamond Princess. It is presumed that the inevitable emergence of COVID-19 has exacerbated underlying worker disaffection over protection, pay or communication.
Allen-Harim has indicated that it will compensate growers, but there is no indication of the method to be used for disposal of dead birds or which party will bear costs.
The National Chicken Council has urged the USDA to make available funds to compensate growers for COVID-19 associated losses. It is expected that integrators will stand by their contracts at considerable expense.