- Confirmation by the USDA of the H5N2 avian flu in a backyard chicken flock in Kansas is seen by industry insiders as a potential tipping point in prompting expanded export restrictions.
- The H5N2 strain was detected in commercial flocks in Missouri and Arkansas last week
- Reports of the avian flu have filtered up and down the major U.S. migratory bird route (Montana to Texas) - including detection of the H5N2 strain in commercial flocks in Missouri and Arkansas.
- Though major chicken producers have reported their flocks are unaffected by the H5N2 flu, the cut in exports could pressure domestic prices with supply higher.
- The developments in the chicken market could impact wholesale costs for Buffalo Wild Wings (BWLD) and Popeye's Louisiana Kitchen (PLKI).
- USDA statement on the avian influenza outbreak (.pdf)
- On watch: Tyson Foods (NYSE:TSN), Sanderson Farms (NASDAQ:SFM), Pilgrim's Pride (NYSE:PPC), Hormel Foods (NYSE:HRL), JBS (OTCQX:JBSAY).