The January winter storm that blanketed Arkansas caused an estimated $200 million in damage to the state’s poultry industry, according to a preliminary report from the University of Arkansas System Division of Agriculture.
The March 3 report, authored by Division of Agriculture economists Frank Seo, James Mitchell and Ryan Loy, assessed damage from the late January weather event that brought up to 12 inches of snow and 2 inches of sleet to some areas.
Data collected from eight poultry integrators operating across Arkansas revealed bird mortality losses valued at approximately $12.08 million and structural damage estimates ranging from $172.33 million to $202.06 million.
According to statewide survey data collected by Cooperative Extension Service agents, 241 poultry houses were destroyed during the storm, with an additional 91 houses damaged.
The report estimated $26.83 million in foregone farmer income from the lost birds and $21.74 million in lost economic output under a one-year disruption scenario. The estimated statewide economic impact of lost poultry production capacity was $48.26 million, representing combined effects of reduced production capacity and associated disruptions across supply chains and household spending.
The loss of production is estimated to reduce economic activity enough to support about 44 fewer full-time-equivalent jobs across the Arkansas economy.
“The biggest statewide hit is lost household income, especially grower pay and related wages, because that is what ripples into local spending,” Seo said.
Between bird mortality and loss of production capacity, the report estimated $3.83 million in lost tax revenue to city, county, state and federal governments.
The economic impacts will be felt across multiple industries, including transportation, grain farming, veterinary services and others closely tied to poultry production.
On a positive note, reconstruction and repair of damaged facilities is estimated to generate between $292.92 million and $343.45 million in economic activity, producing between $29.76 million and $34.90 million in estimated tax revenue.
Seo said the findings highlight an infrastructure resilience issue for the poultry industry.
“Commercial poultry production depends on continuous power and environmental control systems, including heating, ventilation and automated feeding,” Seo said. “The prolonged cold temperatures, snow and ice loads, and widespread power outages associated with the winter storm demonstrate how quickly infrastructure failures can cascade into production losses, reduced household income, job impacts and broader economic effects across the state economy.”
The poultry industry analysis follows an earlier report that estimated the January storm caused $24 million in losses to Arkansas’ cattle industry.
The full report is available at https://bit.ly/Ark-winter-damage-poultry.
