NORTHWEST ARKANSAS — Global export markets were a $3.36 billion business for three local meat and poultry processors in 2010, according to recent reports from Tyson Foods, Simmons Foods and George’s Inc.
Tyson exported $3.2 billion of chicken, beef and pork to more than 100 countries in 2010, despite major disruptions with Russia and China, two of their largest international customers in recent years. Exports comprised about 11.27 percent of Tyson’s total sales last year and contributed to the company’s record profi t.
Tyson’s export sales improved from $2.7 billion in 2009, but compared evenly with export sales in 2008.
Chicken exports made up about half of Tyson’s total export sales last year and remain vitally important as grain prices escalate.
Poultry economist Paul Aho said healthy export markets keep dark meat prices higher for U.S. chicken companies struggling with tighter profit margins as feed prices continue to rise.
Local growers also benefit when export markets are fl ourishing because chicken companies typically keep production levels high, which means more birds are needed.
“Growers can’t make money if there are no birds in the houses,” said Frank Jones, local poultry consultant. “When a company can’t sell product abroad it stacks up in freezers and then production is cut, which then trickles down to growers who get fewer birds to raise.”
He said export markets are essential to the stability of our local poultry industry and also provide companies with growth opportunities.
Simmons Foods reported poultry export sales totaling $105 million, or about 15 percent of the company’s total revenue last year.
According to WATT Poultry USA, George’s of Springdale exported about $55.8 million of chicken in 2010, comprising about 9 percent of the company’s total sales.
The U.S. Department of Agriculture recently noted U.S. companies sold 4 percent less chicken abroad in 2010, but at higher prices which pushed total export values up slightly for the year.
“We wouldn’t normally tout declines in exports, but the fact that prices for chicken and turkey rose is a testament to our industry’s resilience and adaptability to fi nd new markets,” said Jim Sumner president of the U.S. Poultry and Egg Export Council.
Broiler shipments to Russia were $317.3 million, down 58 percent from a year ago because the country banned imports on U.S. chicken sanitized with chlorine.
The USDA expects poultry exports to rise 3.3 percent in 2011 as global demand improves.
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BY THE NUMBERS
U.S. BROILER EXPORTS
Total sales to the top four export markets in 2010, compared to 2009. Mexico: $362 million, up 11 percent Russia: $317.3 million, down 58 percent Hong Kong: $259 million, up 182.5 percent Angola: $139 million, up 140 percent
SOURCE: USDA