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000613 Lack of Russian Orders Hurt Poultry

June 7, 2000

Montgomery, AL - Alabama poultry growers are feeling a financial pinch after Russians cut back on their orders for chickens, leaving a glut on the global market that threatens profits.

“There are a lot of chickens on the market because foreign exports are down,” said Franklin County grower Mike Clay. “The Russians don't have money to buy chickens.”

Johnny Adams, executive director of the Alabama Poultry and Egg Association, said it didn't take long for the Russian economy to affect Alabama's chicken growers.

“When the ruble fell they had no money to buy anything, and the export market has declined,” Adams said.

He hopes new trade with China will fill the gap created by the loss of sales to Russia.

Poultry represents the state's largest agricultural product, accounting for 57% of all farm income in Alabama. The industry also employs 78,000 people and accounts for 75% of all state farm exports.

Poultry expert Michael Eckman of Auburn University said the global demand for poultry grew 78% between 1988-98, while the demand for pork was up 34% and beef up 5%.

State Agriculture Commissioner Charles Bishop said he's aware of the poultry industry's troubles.

Robert Brewer, head of the poultry science department at Auburn, said growers are paid the same under their contracts, regardless of market conditions.

“It's possible if the company has to cut back a little bit there might be more down time between flocks,” Brewer said.

But there's a bright spot on the horizon, Adams said - the potential for a growing export market to Asia, particularly China.

Alabama poultry growers have been writing their congressmen, asking them to vote for the China trade agreement. “It'll open up markets in China, probably for poultry,” Clay said.

“China is our shining star,” Adams said. “The House voted for it, and we hope the Senate follows suit.”

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