Report notes Arkansas poultry sector losses from winter storms

More than $200 million in damage is the estimate to Arkansas’ poultry sector from the January snow and sleet storm that blanketed much of the state, according to a preliminary finding from the University of Arkansas Division of Agriculture.

The report, compiled by UA agri-economists, said the winter storm that brought as much as 12 inches of snow and 2 inches of sleet in some areas of the state was particularly damaging to poultry grow houses and other farm structures. Bird mortality losses were valued at around $12.08 million, and structural damage estimates range from $172.33 million and $202.06 million.

The UA Cooperative Extensive Service statewide survey indicated 241 poultry houses were destroyed during the storm, and an additional 91 poultry houses were damaged. These impacted houses ranged from small broilers to breeders and turkeys at various stages of the growth cycle.

Aggregate farmer income will be reduced by an estimated $26.83 million from the lost birds, the report states. Economic loss is expected to total $21.74 million from the one-year supply disruption. The estimated statewide economic impact of the lost poultry production capacity was $48.26 million, representing the combined effects of “reduced poultry production capacity and associated disruptions across supply chains and household spending,” the report stated.

Frank Seo, one of the economists authoring the report, estimates the loss of production could reduce economic activity enough to support about 44 full-time equivalent jobs across the state’s economy.

“The biggest statewide hit is lost household income, especially grower pay and related wages, because that is what ripples into local spending, including reduced tax revenue for municipalities,” Seo said.

He said any effects on consumers would likely be limited to regionally sourced products. The report did not model any impact on poultry prices because companies typically have the flexibility to shift production across regions to defray temporary supply chain disruptions.

The report said rebuilding the destroyed infrastructure will help offset economic losses. The report estimates that repairing and replacing the damaged facilities could generate between $292.92 million and $343 million in economic activity and also create around $29.76 million to $34.90 million in estimated tax revenue.

Link here for a PDF of the 32-page report.