Health officials are still working to learn more about High-Path Avian Flu (HPAI) found in dairy cattle in several states, and on Tuesday, the markets reacted sharply to the news.
At first, the cases in Texas and Kansas left farmers and officials baffled, calling it a mystery illness. Some cows had to be culled, but others returned to normal, and it appears to only be affecting older dairy cows.
HPAI devastated the poultry industry over the last few years, with widespread outbreaks in commercial poultry flocks resulting in the death of millions of birds across the United States — specifically devastating egg-layer flocks. Previously, it was only detected in commercial and wild birds, however, scientists recently confirmed the first case affecting livestock, when it was discovered in a baby goat in Minnesota earlier this month.
Health officials say instances of HPAI in dairy cattle pose no threat to humans because of the pasteurization process that occurs before dairy products hit supermarket shelves.
Our friend, markets expert Tommy Grisafi was on the Cow Guy Close and said the outbreak could have a big impact on the markets if it gets any worse.
“What we’re worried about in commerce is that people in foreign countries will take a break on American beef,” Grisafi said, reacting to the news. “They’ll go elsewhere like New Zealand, Mexico, Australia... and if they have to go to England to get beef, that’s not good.”
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One trader said the products entering the U.S. are primarily grind and trim, noting that the volume and type of beef, on its own, should not cause a major disruption. However, he says fund traders are reacting heavily to headlines rather than market realities.
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