Scandi Standard, the Scandinavian poultry group, has warned its earnings will feel the negative impact of bird flu as some markets close to poultry exports from Denmark and Sweden.
The company said “a number” of countries have been closed to export of poultry products from Denmark after the H5N8 avian influenza virus was found in the country. Further trade restrictions are expected to be imposed on poultry products manufactured in Sweden following the detection of the disease in poultry flocks in the country earlier this week (23 November).
“Based on the current status, the negative EBIT effect on its export volumes is expected to be in the range of SEK4-8m (US$433,436-866,651) per month. The impact may, however, be larger during the initial stages as new markets/channels needs to be identified and logistics adapted,” the company said in a statement.
Scandi Standard added temporary trade restrictions are “typically” imposed for a duration of six to 12 months.
The company said it is reviewing alternative markets for its poultry products made in Sweden and Denmark. However, trade restrictions over bird flu placed on other European countries, such as Germany, mean these alternative markets are facing a glut, pushing prices down.
Scandi Standard’s suppliers have implemented “elevated” biosecurity measures and no avian influenza has been detected in the group’s flocks, the company stressed.