United States 

Department of 

Agriculture

Animal and 

Plant Health 

Inspection 

Service

October 2014

Analysis in Support of Certification that the 

Rule will not have a Significant Economic 

Impact on a Substantial Number of Small 

Entities

Final Rule

APHIS 2006-0074

RIN 0579-AC36

Restrictions on the Importation of Poultry 

and Poultry Products from Regions Affected 

with Highly Pathogenic Avian Influenza 

(HPAI)

Policy & Program Development

Policy Analysis & Development
i

Summary

In response to the 2003 outbreaks of the highly pathogenic avian influenza (HPAI) H5N1 

virus and to prevent the introduction of HPAI into the United States, APHIS published an interim 

rule that amended the regulations in 9 CFR parts 93, 94, and 95, to prohibit or restrict the 

importation of birds and poultry products from regions where any subtype of HPAI exists. 

APHIS is adopting the rule with changes: The final rule will permit the importation of live 

zoological birds that have been vaccinated for avian influenza as part of an official program and 

under specific conditions, and will allow the importation of pigeons, doves, and other 

Columbiform avians under permit and controlled conditions from regions considered to have 

HPAI. Potential impacts on small entities are considered in accordance with the Regulatory

Flexibility Act.

Because of the substantial overlap between existing restrictions to prevent the 

importation of articles that could introduce Newcastle disease and the new restrictions to prevent 

the importation of articles that could spread HPAI, this final rule is not expected to have 

significant economic impacts. Poultry and poultry product imports are minor compared to 

domestic production. The importation of live zoological birds that have been vaccinated for 

avian influenza as part of an official program and under specific conditions, and the importation 

of HPAI-resistant pigeons, doves, and other Columbiform species under certain conditions from 

regions where HPAI is considered to exist, are not expected to have any significant impact. 

Compliance costs will be incurred only with respect to imports from regions where HPAI is 

discovered and there are no existing restrictions for HPAI or Newcastle disease. Although most 

U.S. poultry and egg producers and importers are small entities, this rule will not have a 

significant economic impact on a substantial number of small entities. 
ii

Table of Contents

Summary.............................................................................................................................. i

Introduction......................................................................................................................... 1

The U.S. Poultry and Poultry Product Industries................................................................ 2

Potential Impact on Small Entities...................................................................................... 4
1

Introduction 

This analysis provides the basis, as required by the Regulatory Flexibility Act, for 

certification by the APHIS Administrator that the rule will not have a significant economic 

impact on a substantial number of small entities.

In response to the 2003 outbreaks of the highly pathogenic avian influenza (HPAI) H5N1 

virus and to prevent the introduction of HPAI into the United States, APHIS published an interim 

rule effective January 24, 2011. The interim rule amended the regulations in 9 CFR parts 93, 

94, and 95, to prohibit or restrict the importation of birds and poultry products from regions 

where any subtype of HPAI exists. The same mitigations as applied for Newcastle disease have 

been adopted, with the additional stipulation that certain poultry products be cooked to a 

minimum internal temperature of 74°C and be accompanied by a certificate verifying compliance 

with this requirement. This rule also prohibits the importation of live commercial birds or 

poultry vaccinated for avian influenza, hatching eggs that were laid by birds or poultry

vaccinated for avian influenza, and live birds or poultry, and hatching eggs, that transit regions 

where HPAI of any subtype is known to exist. 

APHIS is adopting the interim rule, with changes: the final rule will permit the 

importation of live zoological birds that have been vaccinated for avian influenza as part of an 

official program and under specific conditions, and allow the importation of pigeons, doves, and 

other Columbiform avians under permit and controlled conditions from regions considered to 

have HPAI.

The economic analysis examines the potential economic effects of this rule on small 

entities, as required by the Regulatory Flexibility Act.
2

The U.S. Poultry and Poultry Product Industries1

 The United States is the world's largest poultry producer and the second-largest egg 

producer. Over 43 billion pounds of poultry meat are produced annually in the United States. 

Eighty percent is broiler meat, most of the remainder is turkey meat, and a small fraction is other 

chicken meat. The total value of U.S. poultry production exceeds $20 billion annually. Broiler 

production accounts for the majority of this value, followed by eggs, turkey, and other chicken. 

Broiler production is concentrated in a group of States stretching from Delaware, south along the 

Atlantic coast to Georgia, then westward through Alabama, Mississippi, and Arkansas. Georgia 

is the top broiler-producing State, followed by Arkansas, Alabama, Mississippi, and North 

Carolina. Since the 1960s, the poultry industry has undergone substantial changes and become 

increasingly vertically integrated, with most U.S. broiler production under contract with a broiler 

processor. The grower normally supplies the grow-out house with all the necessary heating, 

cooling, feeding, and watering systems.

Regarding turkey production, the United States produces over one-quarter of a billion 

birds annually, with the live weight of each bird averaging over 25 pounds. Turkey production is 

more scattered geographically than broiler production. The top five turkey-producing States are 

Minnesota, North Carolina, Missouri, Arkansas, and Virginia. The United States is by far the 

world's largest turkey producer, followed by the European Union. Although U.S. turkey exports 

are substantial, the United States consumes more turkey per capita than any other country.

Over 90 billion eggs are produced in the United States annually. Over 75 percent is for 

human consumption (the table-egg market). The rest is for the hatching market to provide 

 

1 Background information on U.S. poultry and egg production and trade obtained from the Economic 

Research Service: http://www.ers.usda.gov/Briefing/Poultry/
3

replacement birds for the egg-laying flocks and to produce broiler chicks for grow-out 

operations. The top five egg-producing States are Iowa, Ohio, Pennsylvania, Indiana, and Texas. 

Most table eggs are consumed domestically, with only a small share exported. U.S. per capita 

consumption of eggs and egg products is around 250 eggs per person.

In terms of trade, the United States is the world's second-largest exporter of broiler meat 

behind Brazil. Between 2004 and 2008, exports ranged from 4.8 to 7.0 billion pounds, and 

accounted for 14 to 17 percent of total production. Demand for U.S. broiler products has 

fluctuated over the last several years due to changing economic conditions and currency

exchange rates in major importing countries. The largest importers of U.S. broiler products are 

Russia, China (including Hong Kong), and Mexico. In terms of quantity, these markets 

accounted for over half of U.S. broiler product exports. The United States imports only small 

amounts of broiler products, equivalent to less than one percent of domestic production.

The United States is the world's largest exporter of turkey products. U.S. turkey exports 

total between 500 and 600 million pounds. Less than one percent of turkey exports are as whole 

birds; the majority of shipments are lower-valued turkey parts or ground or mechanically

deboned meat. Many importing countries mix this meat with other meats in sausage production. 

Mexico is by far the largest importer of U.S. turkey meat, accounting for over half of U.S. turkey

exports. The United States imports only a small amount of turkey products, with most imported 

products coming from Canada.

U.S. egg exports include 1) table eggs for consumption, with Canada and Mexico the 

major markets; 2) shell eggs for hatching, primarily to Canada and Hong Kong; and 3) egg 

products (dried and non-dried albumin and dried and non-dried yolk), used mainly by restaurants 

and in the baking and prepared-foods industries. Major destinations for U.S. exports of dried 
4

albumin are Japan, Spain, and Israel, while Canada is the largest importer of non-dried albumin. 

Japan, Mexico, and Canada are the top destinations for dried yolk, while Japan, Canada, and 

South Korea are the top importers of non-dried yolk.

Potential Impact on Small Entities

The Regulatory Flexibility Act requires agencies to evaluate the potential effects of their 

proposed and final rules on small businesses, small organizations and small governmental 

jurisdictions. Section 604 of the Act requires an agency to prepare a final regulatory flexibility

analysis (FRFA) that describes the expected impact of the rule on small entities and the steps the 

agency has taken to minimize significant economic impacts on small entities. In place of the 

FRFA, the head of the agency may certify that a rule will not have a significant economic impact 

on a substantial number of small entities. 

Most entities that may be affected are small according to Small Business Administration 

(SBA) guidelines and based on 2007 Census of Agriculture and 2007 Economic Census data. 

For entities categorized within the industries: broilers and other meat type chicken production 

(North American Industry Classification System (NAICS) code 112320), turkey production 

(NAICS 112330), poultry hatcheries (NAICS 112340), and other poultry production (NAICS 

112390), the SBA small-entity standard is annual sales of not more than $750,000. For entities 

classified within chicken egg production (NAICS 112310), the SBA small-entity standard is 

annual sales not exceeding $12.5 million. According to the 2007 Census of Agriculture,2there 

were a total of 148,911 farms producing poultry and eggs that year. The percentage breakdown 

between those producing poultry and those producing eggs is not known. However, 

 

2 Census of Agriculture: Retrieved from http://www.agcensus.usda.gov/Publications/2007/Full_Report/index.asp
5

approximately 86 percent had annual sales in 2007 of less than $500,000, well below the SBA 

standards for the listed industries.3 

For live poultry merchant wholesalers (NAICS 4244401) and poultry and poultry product 

(except live) merchant wholesalers (NAICS 4244402), establishments with not more than 100 

employees are considered small by SBA standards. In 2007, there were a total of 41 live poultry

wholesale trade establishments in the United States.4 All were in operation the entire year, and 

only two (less than 5 percent) employed more than 100 employees. There were a total of 536 

poultry and poultry product wholesale trade establishments in the United States in 2007. Of the 

501 firms that were in operation the entire year, 479 or 96 percent employed fewer than 100 

employees.

Entities classified within the industry zoos and botanical gardens (NAICS 712130) are 

considered small if their annual sales are not more than $7 million. In 2007, average sales by the 

569 enterprises in this industry were less than $5 million.

The objective of this rule is to establish requirements that allow the safe importation of 

birds, poultry, and bird and poultry products from countries where HPAI of any subtype exists. 

While most entities that may be affected by this rule are small, costs of complying with the rule 

will not be significant. There were no significant issues raised in public comment regarding the 

economic analysis conducted for the interim rule or by SBA’s Office of Advocacy regarding the 

initial regulatory flexibility analysis. The APHIS Administrator has determined that this action 

will not have a significant economic impact on a substantial number of small entities.

 

3

Source: SBA and 2007 Census of Agriculture. http://www.sba.gov/size/sizetable2002.html

4

Source: SBA and 2007 Economic Census, Survey of Business Owners retrieved from: 

http://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=D&-ds_name=SB0700CSA09&-_lang=en