Financial effects of the highly pathogenic avian influenza outbreaks on the Turkish broiler producers

Abstract

This research aimed at assessing the financial effects of the 2005 to 2006 highly pathogenic avian influenza outbreaks on Turkish broiler enterprises. The data were obtained from an interview survey carried out in 499 enterprises randomly selected from 14 provinces that accounted for 79% of the national broiler production. The research revealed that the contracted broiler producers lost on average 1.38 cycles of production and their management fee reduced by 14.7% in 8 mo after the outbreaks. As a result, the broiler production and the enterprise income declined by 34.8 and 44.3%, respectively. The bank loan of the producers rose by 161%. A total of 93% of the producers did not do any other supplementary work during the idle production period in spite of the fact that broiler production was the only business of 36% of them. Furthermore, more than half of the producers (56%) stated that they were considering expanding their business, but suspended this idea due to the outbreak. Approximately 87% of the producers increased the biosecurity measures after the outbreaks. The nationwide effects of the avian influenza outbreaks on the contracted broilers farms were estimated to be US$100.8 million (US$7,967/broiler house). The futures of the contracted broiler producers are fully dependent upon those of the integrated firms. Any negative effects on the latter appeared to be transferred directly to the former. However, the government neglected the integrated firms in the avian influenza compensation programs.