Source:  MEATINGPLACE.COM, 4/29/11

Storms and tornadoes that ripped through the U.S. Southeast this week may have killed millions of chickens in Alabama and forced several plants to temporarily cease production.

Tyson Foods spokesman Gary Mickelson told Meatingplace the company’s Blountsville and Albertville, Alabama, chicken processing plants were idled Wednesday when they lost power in the storm, and the company is still assessing the damage to its contract chicken farms.

The power is back on at Blountsville but has not been restored at Albertville, he said in an e-mail.
“Some chicken houses in the area were destroyed and others experienced various levels of damage. Our plan is to assist our growers as much as possible with clean up efforts and ensure the affected birds are properly handled in conjunction with state veterinary authorities,” Mickelson said.

Tyson is also distributing food and water to its employees and contract poultry growers in North Alabama, as well as ensuring its growers have feed supplies, he said.

A Peco Foods processing plant in Tuscaloosa was heavily damaged and may be closed for several weeks, a Peco spokesman Steve Conley confirmed to Meatingplace. The company plans to operate its other processing plants, including four in Mississippi, longer hours to compensate for the Alabama closure.

Commissioner John McMillan of the Alabama Department of Agriculture & Industries said North Alabama poultry producers and meat processors suffered significant damage from the storms, with about 200 poultry houses destroyed and another 180 damaged. A standard poultry house can hold an average of 20,000 chickens.

“Thousands of chickens have been lost in the tornados, and these numbers could grow as we continue to assess the damage,” McMillan said in a statement. “Power outages and loss of drinking water could worsen an already critical situation for poultry producers and meat processors.”

Pilgrim’s Pride Corp. Chief Executive Bill Lovette on Friday said the company was still trying to determine how many chickens were lost as a result of the storms. About 100 of the company’s more than 16,000 chicken houses were damaged or destroyed by the storms.

Lovette, speaking on the company’s quarterly earnings conference call, said he expects plants in Boaz and Guntersville, Alabama, to be up and running next week after losing electricity when the storms hit.
Stephens Inc. analyst Farha Aslam said any production declines due to the storms will likely be temporary.
“The weather-related events could cause a downtick in near-term industry supplies. This should be slightly supportive for poultry prices, but the overall impact is expected to be limited,” Aslam wrote in a note to clients.

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