Voluntary Report - Public distribution

**Date:** 10/2/2007

**GAIN Report Number:** CA7049

CA7049

**Canada**

**Poultry and Products**

**Minimal Economic & Trade Impact of HPAI H7N3 Detection on Saskatchewan
Farm**

**2007**

**Approved by:**

![](media/image1.wmf)Wayne Molstad

Office of Agricultural Affairs, U.S. Embassy

**Prepared by:**

Wayne Molstad and George Myles

**Report Highlights:**

There is minimal Canadian economic and trade impact of HPAI H7N3
detection on a broiler breeder farm in Saskatchewan. The Canadian Food
and Inspection Agency (CFIA) officially reported Sep. 27 and to OIE on
Sep. 28. Japan and China banned all Canadian poultry and poultry
products, yet U.S. and Hong Kong only restrict such poultry imports from
Saskatchewan province. Only 50,000 poultry depopulated, and Saskatchewan
province accounts for 3 percent of Canada's poultry production. There is
no human infection.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Ottawa \[CA1\]

\[CA\]

Table of Contents

[**Detection Location and Notifications
3**](#detection-location-and-notifications)

[CFIA Regionalizes Quarantine and Surveillance Premises
3](#cfia-regionalizes-quarantine-and-surveillance-premises)

[Map of Restricted Areas 3](#map-of-restricted-areas)

[Economic Impact Minimal 4](#economic-impact-minimal)

[TRADE 4](#trade)

[Export Impact 4](#export-impact)

[Current Saskatchewan HPAI H7N3 detection trade bans
4](#current-saskatchewan-hpai-h7n3-detection-trade-bans)

[All Canada: 4](#all-canada)

[Saskatchewan Province: 4](#saskatchewan-province)

[United States Canadian Imports 4](#united-states-canadian-imports)

[WebLinks: 4](#weblinks)

# Detection Location and Notifications

A farmer in southern Saskatchewan Province notified officials on Sunday,
Sept. 23 of high mortality on breeder broiler poultry farm. The farm
detection is northwest of Regina, Saskatchewan and is located about 150
miles from the border with Montana.

The Canadian Food Inspection Agency (CFIA) confirmed high pathogenic
avian influenza (HPAI) H7N3 laboratory results. H7N3 is not the same as
Asian H5N1 that has been circulating in Asia, Europe, Africa and the
Middle East. On Thursday, Sept. 27, 2007 CFIA publicly notified their
first HPAI detection in Canada since 2004. CFIA also notified
APHIS/USDA. CFIA officially submitted their report to the World
Organization of Animal Health (OIE) on Friday, Sept. 28. CFIA will
report more full science based official information to APHIS/USDA and
OIE.

# CFIA Regionalizes Quarantine and Surveillance Premises

Upon farm detection, CFIA imposed a 3 kilometer (1.86 miles) quarantine
"Infected Region" of depopulation of farm poultry (government will
provide market value compensation). There will be a minimum 21 days of
cleaning and disinfection of barns, vehicles, equipment and tools. There
is restricted movement of any poultry or poultry products. CFIA also
imposed a 10 kilometer (6.2 miles) surveillance "Restricted Region", and
thus far, they have not found any other detection. Vaccination is
prohibited. See CFIA Map below.

CFIA continues to investigate the unknown source of detection. They are
examining if it came from wild waterfowl or other item transmissions.

There were no human infections. CFIA reported that they informed during
Sept. 27 press conference that they will work with others on public
health in that area. They reported food safety and there is no H7N3
human infection. In contrast, H5N1 human cases mostly resulted from
human direct contact with infected birds of other poor countries such as
backyard farms or live markets. There is no human pandemic.

# Map of Restricted Areas

![](media/image2.png){width="4.645833333333333in"
height="3.2916666666666665in"}[\[D\]](http://www.inspection.gc.ca/english/anima/heasan/disemala/avflu/2007sask/notavidesce.html)

# Economic Impact Minimal

Chicken Farmers of Canada representative Lisa Bishop Spencer was noted
in a Sept. 29 CBC News that, "...it's not expected to have much of an
economic impact." Domestically, CFIA allowed Saskatchewan province
unrestricted area for sales of poultry and eggs purchased from grocery
stores plus movement of birds, bird products and farm equipment outside
of the 10 kilometer "Restricted Region". Canadian Agriculture Minister
Gerry Ritz in his Sept 27 press release also noted, "None of the
infected products from this farm were destined for the human food
supply."

# TRADE

## Export Impact 

Canada's chicken poultry broiler meat exports estimated in 2007 were
135,000 metric tons accounting 13.6% of Canadian production (sited in
GAIN Report CA7043 Canada Poultry and Products Annual 2007 report). The
United States accounts for 62% of Canadian poultry exports (\$86 million
in 2006), followed by South Africa (12%, \$17 million); Hong Kong (5%;
\$7 million); and Philippines (4%; \$6 million).

CFIA at their Sept. 27 press conference also said that some countries
may close borders until they can provide more full reports. Some trade
partners will regionalize or ban entire Canadian poultry and poultry
produce imports.

Canada poultry and poultry product trade impact in Saskatchewan
detection will only have poultry "Infected Region" of approximately
50,000 poultry depopulated. By comparison in the last Canadian HPAI
detection in early 2004 in province of British Columbia (BC), there were
approximately 18-19 million poultry depopulated costing \$65-70 million
in BC. For comparison with this incident, BC accounts for about 15% of
Canadian poultry output, yet Saskatchewan only accounts for about 3%.

Of 2004 detection, there were significant temporary trade implications
and additional supplies of U.S. poultry meat were imported under a
special supplementary import program to Canada\'s tariff rate quota for
chicken and turkey. In 2004, the U.S., Hong Kong, and the Philippines
took a regional approach; other smaller markets banned imports from the
entire country. Of BC HPAI detection, Canada was declared AI-free in
December 2005.

# Current Saskatchewan HPAI H7N3 detection trade bans

## All Canada:

**[Japan]{.underline}** banned all poultry and poultry products from
Canada. Last year, Japan imported 60,738 live chicks from Canada. Japan
also imported 170 MT of poultry meat from Canada compared with overall
imports of 379,053 MT in 2006.

**[China]{.underline}** banned all poultry and poultry products from
Canada. China orders return or destruction of products imported after
September 23. Any Canadian poultry products passing through China to
third countries must be sealed.

## Saskatchewan Province:

**[Hong Kong]{.underline}** announced Sept. 28 that it suspended poultry
and game birds import from Saskatchewan.

**[United States]{.underline}** announced Sept. 27 (see below USDA/APHIS
press release information) of imports from Saskatchewan.

# United States Canadian Imports

USDA/APHIS CVO Dr. John Clifford noted on Sept. 27 press release that
"USDA is barring imports of all live birds, including chickens, turkeys
and others, along with unprocessed avian products from the entire
province of Saskatchewan." It also will not impact U.S. imports of
Canadian poultry and poultry products since, "The United States has not
imported poultry products from Saskatchewan since 2005." USDA/APHIS will
review upcoming CFIA official scientific reports and if no other
detection(s), there may be consideration of any other Saskatchewan area
regionalization of U.S. poultry imports.

# WebLinks:

The following is the CFIA link to additional and background information
on the recent AI detection in Saskatchewan and Canadian control
measures:

<http://www.inspection.gc.ca/english/anima/heasan/disemala/avflu/avflue.shtml>

The following is the APHIS link to the statement by Dr. John Clifford on
avian influenza detection in Canada:

<http://www.aphis.usda.gov/newsroom/content/2007/09/ai_canada_statement.shtml>