CHICAGO, Jan 21 (Reuters) - An outbreak of bird flu in

poultry in the U.S. state of Georgia, the nation's biggest

chicken producer, is set to trigger trade restrictions from

major meat importers, an industry group said on Tuesday, warning

of a move that could financially harm farmers and processors.

A flock of 45,500 breeder chickens tested positive last week

in Elbert County, Georgia, near the border with South Carolina,

according to the U.S. Department of Agriculture. It was the

state's first confirmed case in a commercial poultry operation,

Georgia's agriculture department said.

The case comes as food producers worry that President Donald

Trump's threats to impose tariffs on goods from trading

partners, such as China and Mexico, will lead to retaliation

that could also hurt U.S. agricultural exports.

An outbreak in a commercial flock typically triggers trade

restrictions on poultry products from the county or state where

the infected farm is located. The restrictions expected on

Georgia's poultry threaten producers and processors, such as

Pilgrim's Pride.

Initial losses for exports could be about $34 million, the

USA Poultry & Egg Export Council said.

Mexico, the biggest importer of U.S. poultry products, will

likely halt purchases from Georgia for about two to four weeks,

until it revises the ban to apply to the county, the industry

group said.

Taiwan, the third-biggest importer of U.S. poultry, will

block poultry imports from Georgia for six to eight months, the

export council estimated.

South Korea will likely impose a ban on Georgia's poultry

that should be lifted 28 days after the virus has been

eliminated, a process that will likely take three to four

months, the council said.

USDA had no immediate comment on potential trade

restrictions.

More than 138 million U.S. chickens, turkeys and other birds

have died from bird flu or been culled to contain the disease

since 2022. About 930 dairy herds and 67 people, mostly

farmworkers, tested positive since 2024.

"This is a serious threat to Georgia's No. 1 industry,"

Georgia Agriculture Commissioner Tyler Harper said in a

statement.

China has blocked Georgia's poultry since 2023, when a

commercial flock of waterfowl tested positive, USDA records

show.