Estimating Economic Losses by Contract Growers in the Poultry Sector due to COVID-19

 

 

Research was performed in a multi-university team to assist contract poultry growers in obtaining federal assistance to compensate them for pandemic-related economic losses. That research helped support these farmers in receiving assistance as part of a subsequent federal program (the Coronavirus Food Assistance Program 2 or CFAP2). Nationwide, growers appear to have received around $280 million in compensation so far.

 

 

The COVID-19 pandemic had two impacts on the poultry industry. Illnesses forced some poultry processing plants to shut down or slow production, but this effect was much smaller than the impact from the shutdown of much of the food service sector. Disruption in the food service sector (shutdowns of restaurants, school lunch programs, and cafeterias) sharply reduced demand for some poultry products while increased working from home and consumption of food prepared at home increased demand for other poultry products. This caused some plants to shut down or slow production because they had few or no customers for their (food service-oriented) products.

 

 

A team of agricultural economists from seven different land grant universities in the Southeast combined to estimate the losses to contract poultry growers from this situation. These estimates included losses from abandoned flocks, increased down time between flock placements, smaller flocks, and lower weight targets for completed birds. The estimates arrived at suggested that losses for chicken and turkey contract growers were about $175 million. The estimates arrived at were used by the poultry industry to request assistance from the federal government as part of emergency relief legislation or programs.

 

 

Broiler growers who are not under contract with a processor were included in the Coronavirus Food Assistance Program 2 (CFAP2) program of federal assistance to farmers. While final payment data is not available yet, based on USDA updates, broiler growers have received about $280 million is compensation from losses associated with the coronavirus. For contract growers to receive compensation they will need to be included in a future relief bill. Thus, the final impact of this research is still to be determined.

Video: Finding a Balance of Innovation and Regulation - Dr. Peter Facchini

Regulations help markets and industry exist on level playing fields, keeping consumers safe and innovation from going too far. However, incredibly strict regulations can stunt innovation and cause entire industries to wither away. Dr. Peter James Facchini brings his perspective on how existing regulations have slowed the advancement of medical developments within Canada. Given the international concern of opium poppy’s illicit potential, Health Canada must abide by this global policy. But with modern technology pushing the development of many pharmaceuticals to being grown via fermentation, is it time to reconsider the rules?

Dr. Peter James Facchini leads research into the metabolic biochemistry in opium poppy at the University of Calgary. For more than 30 years, his work has contributed to the increased availability of benzylisoquinoline alkaloid biosynthetic genes to assist in the creation of morphine for pharmaceutical use. Dr. Facchini completed his B.Sc. and Ph.D. in Biological Sciences at the University of Toronto before completing Postdoctoral Fellowships in Biochemistry at the University of Kentucky in 1992 & Université de Montréal in 1995.