UK poultry farmers could lose £30m if avian flu spreads: Aon

UK poultry farmers could lose as much as £30m if the latest outbreak of avian flu spreads throughout the UK, according to Aon.

To further the blow, this is a key sales time for the poultry industry leading up to the festive period.

Due to EU regulations affecting government compensation, there is a potentially significant gap between the compensation received for slaughtered birds and the amount a poultry farmer could have expected to earn for each bird. In addition, there is the longer term impact on the business through lost production and the risk that a farm will be unable to fulfil contracts. This could affect the long term relationship with customers and therefore prolonge the loss of income.

Steve Hibbert, broking manager at Aon, commented: "Poultry farmers will take out insurance to cover a fire, for example, but tend to think that 'it won't happen to me' when it comes to avian flu or are unaware that cover against an avian flu outbreak is available. With two major outbreaks in the UK this year, it's time for poultry farmers and egg producers to sit up and work out how to respond to the crisis which could affect the strength of their business. Not only do farmers need to plan for financial compensation but take into account breeding cycles which could set back their business another 14-16 weeks before they are able to trade again. This timeframe could be even longer for egg producers."

Martin Dockrill, technical director at Aon, added: "Few UK firms have any plans or have undertaken simulations to prepare for an avian flu outbreak, even though pandemic is inevitable. This is in stark contrast to the US. The catalyst there has been businesses and government seeking confirmation from those in their supply chain on actions to prepare for disasterous scenarios. Town halls in the US have even begun a series of open days, talking to local businesses to investigate and improve pandemic readiness."