Bird flu hits world's largest poultry exporter Brazil
Brazil, the world's largest chicken exporter, has confirmed its first outbreak of bird flu on a poultry farm, triggering a country-wide trade ban from China and state-wide restrictions for other major consumers.
The outbreak in southern Brazil was identified at a farm supplying Vibra Foods, a Brazilian operation backed by Tyson Foods, according to two people familiar with the matter.
Vibra and Tyson did not immediately respond to questions.
Vibra has 15 processing plants in Brazil and exports to more than 60 countries, according to its website.
Brazil exported $US10 billion ($A16 billion) of chicken meat in 2024, accounting for about 35 per cent of global trade.
Much of that came from meat processors BRF and JBS, which ship to 150 countries.
China, Japan, Saudi Arabia and the United Arab Emirates are among the main destinations for Brazil's chicken exports.
Brazil's Agriculture Minister Carlos Favaro said on Friday China had banned poultry imports from the country for 60 days.
Under agreements with Japan, the UAE and Saudi Arabia, he said a trade ban would only restrict shipments from the affected state and, eventually, just the municipality in question.
The outbreak occurred in the city of Montenegro in Brazil's southernmost state of Rio Grande do Sul, the farm ministry said.
The state accounts for 15 per cent of Brazilian poultry production and exports, pork and poultry group ABPA said in July 2024.
BRF has five processing plants operating in the state.
JBS has also invested in local chicken processing plants under its Seara brand.
State officials said the outbreak of H5N1 bird flu is already responsible for the death of 17,000 farm chickens, either directly from the disease or due to cautionary culling.
Veterinary officials are isolating the area of the outbreak in Montenegro and hunting for more cases in an initial 10km radius, the state agricultural secretariat said.
Favaro, the farm minister, said Brazil was working to contain the outbreak and negotiate a loosening of trade restrictions faster than the two months agreed in protocols.
"If we manage to eliminate the outbreak, we think it's possible to re-establish a normal trade flow before the 60 days are up, including with China," Favaro said in an interview aired on CNN Brasil.
Chicken products shipped by Thursday will not be affected by trade restrictions, he added.
The ministry said in a statement that it was officially notifying the World Organisation for Animal Health.
Bird flu has swept through the US poultry industry since 2022, killing about 170 million chickens, turkeys and other birds, severely affecting production of meat and eggs.
Bird flu has also infected nearly 70 people in the US, with one death, since 2024.
Most of those infections have been among farm workers exposed to infected poultry or cows.
The further spread of the disease raises the risk that bird flu could become more transmissible to humans.
By contrast, Argentina was able to isolate a February 2023 outbreak and start resuming exports slowly the next month.
"All necessary measures to control the situation were quickly adopted, and the situation is under control and being monitored by government agencies," Brazil's poultry industry group ABPA said in a statement.
JBS referred questions about the outbreak to ABPA.
BRF CEO Miguel Gularte told analysts on an earnings call that he was confident Brazilian health protocols were robust and the situation would be quickly overcome.
Brazil, which exported more than five million metric tonnes of chicken products last year, first confirmed outbreaks of the highly pathogenic avian flu among wild birds in May 2023 in at least seven states.
The disease is not transmitted through the consumption of poultry meat or eggs, the Agriculture Ministry said.
"The Brazilian and world population can rest assured about the safety of inspected products, and there are no restrictions on their consumption," the ministry said.
Brazil, the world's largest chicken exporter, has confirmed its first outbreak of bird flu on a poultry farm, triggering a country-wide trade ban from China and state-wide restrictions for other major consumers.
The outbreak in southern Brazil was identified at a farm supplying Vibra Foods, a Brazilian operation backed by Tyson Foods, according to two people familiar with the matter.
Vibra and Tyson did not immediately respond to questions.
Vibra has 15 processing plants in Brazil and exports to more than 60 countries, according to its website.
Brazil exported $US10 billion ($A16 billion) of chicken meat in 2024, accounting for about 35 per cent of global trade.
Much of that came from meat processors BRF and JBS, which ship to 150 countries.
China, Japan, Saudi Arabia and the United Arab Emirates are among the main destinations for Brazil's chicken exports.
Brazil's Agriculture Minister Carlos Favaro said on Friday China had banned poultry imports from the country for 60 days.
Under agreements with Japan, the UAE and Saudi Arabia, he said a trade ban would only restrict shipments from the affected state and, eventually, just the municipality in question.
The outbreak occurred in the city of Montenegro in Brazil's southernmost state of Rio Grande do Sul, the farm ministry said.
The state accounts for 15 per cent of Brazilian poultry production and exports, pork and poultry group ABPA said in July 2024.
BRF has five processing plants operating in the state.
JBS has also invested in local chicken processing plants under its Seara brand.
State officials said the outbreak of H5N1 bird flu is already responsible for the death of 17,000 farm chickens, either directly from the disease or due to cautionary culling.
Veterinary officials are isolating the area of the outbreak in Montenegro and hunting for more cases in an initial 10km radius, the state agricultural secretariat said.
Favaro, the farm minister, said Brazil was working to contain the outbreak and negotiate a loosening of trade restrictions faster than the two months agreed in protocols.
"If we manage to eliminate the outbreak, we think it's possible to re-establish a normal trade flow before the 60 days are up, including with China," Favaro said in an interview aired on CNN Brasil.
Chicken products shipped by Thursday will not be affected by trade restrictions, he added.
The ministry said in a statement that it was officially notifying the World Organisation for Animal Health.
Bird flu has swept through the US poultry industry since 2022, killing about 170 million chickens, turkeys and other birds, severely affecting production of meat and eggs.
Bird flu has also infected nearly 70 people in the US, with one death, since 2024.
Most of those infections have been among farm workers exposed to infected poultry or cows.
The further spread of the disease raises the risk that bird flu could become more transmissible to humans.
By contrast, Argentina was able to isolate a February 2023 outbreak and start resuming exports slowly the next month.
"All necessary measures to control the situation were quickly adopted, and the situation is under control and being monitored by government agencies," Brazil's poultry industry group ABPA said in a statement.
JBS referred questions about the outbreak to ABPA.
BRF CEO Miguel Gularte told analysts on an earnings call that he was confident Brazilian health protocols were robust and the situation would be quickly overcome.
Brazil, which exported more than five million metric tonnes of chicken products last year, first confirmed outbreaks of the highly pathogenic avian flu among wild birds in May 2023 in at least seven states.
The disease is not transmitted through the consumption of poultry meat or eggs, the Agriculture Ministry said.
"The Brazilian and world population can rest assured about the safety of inspected products, and there are no restrictions on their consumption," the ministry said.
Brazil, the world's largest chicken exporter, has confirmed its first outbreak of bird flu on a poultry farm, triggering a country-wide trade ban from China and state-wide restrictions for other major consumers.
The outbreak in southern Brazil was identified at a farm supplying Vibra Foods, a Brazilian operation backed by Tyson Foods, according to two people familiar with the matter.
Vibra and Tyson did not immediately respond to questions.
Vibra has 15 processing plants in Brazil and exports to more than 60 countries, according to its website.
Brazil exported $US10 billion ($A16 billion) of chicken meat in 2024, accounting for about 35 per cent of global trade.
Much of that came from meat processors BRF and JBS, which ship to 150 countries.
China, Japan, Saudi Arabia and the United Arab Emirates are among the main destinations for Brazil's chicken exports.
Brazil's Agriculture Minister Carlos Favaro said on Friday China had banned poultry imports from the country for 60 days.
Under agreements with Japan, the UAE and Saudi Arabia, he said a trade ban would only restrict shipments from the affected state and, eventually, just the municipality in question.
The outbreak occurred in the city of Montenegro in Brazil's southernmost state of Rio Grande do Sul, the farm ministry said.
The state accounts for 15 per cent of Brazilian poultry production and exports, pork and poultry group ABPA said in July 2024.
BRF has five processing plants operating in the state.
JBS has also invested in local chicken processing plants under its Seara brand.
State officials said the outbreak of H5N1 bird flu is already responsible for the death of 17,000 farm chickens, either directly from the disease or due to cautionary culling.
Veterinary officials are isolating the area of the outbreak in Montenegro and hunting for more cases in an initial 10km radius, the state agricultural secretariat said.
Favaro, the farm minister, said Brazil was working to contain the outbreak and negotiate a loosening of trade restrictions faster than the two months agreed in protocols.
"If we manage to eliminate the outbreak, we think it's possible to re-establish a normal trade flow before the 60 days are up, including with China," Favaro said in an interview aired on CNN Brasil.
Chicken products shipped by Thursday will not be affected by trade restrictions, he added.
The ministry said in a statement that it was officially notifying the World Organisation for Animal Health.
Bird flu has swept through the US poultry industry since 2022, killing about 170 million chickens, turkeys and other birds, severely affecting production of meat and eggs.
Bird flu has also infected nearly 70 people in the US, with one death, since 2024.
Most of those infections have been among farm workers exposed to infected poultry or cows.
The further spread of the disease raises the risk that bird flu could become more transmissible to humans.
By contrast, Argentina was able to isolate a February 2023 outbreak and start resuming exports slowly the next month.
"All necessary measures to control the situation were quickly adopted, and the situation is under control and being monitored by government agencies," Brazil's poultry industry group ABPA said in a statement.
JBS referred questions about the outbreak to ABPA.
BRF CEO Miguel Gularte told analysts on an earnings call that he was confident Brazilian health protocols were robust and the situation would be quickly overcome.
Brazil, which exported more than five million metric tonnes of chicken products last year, first confirmed outbreaks of the highly pathogenic avian flu among wild birds in May 2023 in at least seven states.
The disease is not transmitted through the consumption of poultry meat or eggs, the Agriculture Ministry said.
"The Brazilian and world population can rest assured about the safety of inspected products, and there are no restrictions on their consumption," the ministry said.
Brazil, the world's largest chicken exporter, has confirmed its first outbreak of bird flu on a poultry farm, triggering a country-wide trade ban from China and state-wide restrictions for other major consumers.
The outbreak in southern Brazil was identified at a farm supplying Vibra Foods, a Brazilian operation backed by Tyson Foods, according to two people familiar with the matter.
Vibra and Tyson did not immediately respond to questions.
Vibra has 15 processing plants in Brazil and exports to more than 60 countries, according to its website.
Brazil exported $US10 billion ($A16 billion) of chicken meat in 2024, accounting for about 35 per cent of global trade.
Much of that came from meat processors BRF and JBS, which ship to 150 countries.
China, Japan, Saudi Arabia and the United Arab Emirates are among the main destinations for Brazil's chicken exports.
Brazil's Agriculture Minister Carlos Favaro said on Friday China had banned poultry imports from the country for 60 days.
Under agreements with Japan, the UAE and Saudi Arabia, he said a trade ban would only restrict shipments from the affected state and, eventually, just the municipality in question.
The outbreak occurred in the city of Montenegro in Brazil's southernmost state of Rio Grande do Sul, the farm ministry said.
The state accounts for 15 per cent of Brazilian poultry production and exports, pork and poultry group ABPA said in July 2024.
BRF has five processing plants operating in the state.
JBS has also invested in local chicken processing plants under its Seara brand.
State officials said the outbreak of H5N1 bird flu is already responsible for the death of 17,000 farm chickens, either directly from the disease or due to cautionary culling.
Veterinary officials are isolating the area of the outbreak in Montenegro and hunting for more cases in an initial 10km radius, the state agricultural secretariat said.
Favaro, the farm minister, said Brazil was working to contain the outbreak and negotiate a loosening of trade restrictions faster than the two months agreed in protocols.
"If we manage to eliminate the outbreak, we think it's possible to re-establish a normal trade flow before the 60 days are up, including with China," Favaro said in an interview aired on CNN Brasil.
Chicken products shipped by Thursday will not be affected by trade restrictions, he added.
The ministry said in a statement that it was officially notifying the World Organisation for Animal Health.
Bird flu has swept through the US poultry industry since 2022, killing about 170 million chickens, turkeys and other birds, severely affecting production of meat and eggs.
Bird flu has also infected nearly 70 people in the US, with one death, since 2024.
Most of those infections have been among farm workers exposed to infected poultry or cows.
The further spread of the disease raises the risk that bird flu could become more transmissible to humans.
By contrast, Argentina was able to isolate a February 2023 outbreak and start resuming exports slowly the next month.
"All necessary measures to control the situation were quickly adopted, and the situation is under control and being monitored by government agencies," Brazil's poultry industry group ABPA said in a statement.
JBS referred questions about the outbreak to ABPA.
BRF CEO Miguel Gularte told analysts on an earnings call that he was confident Brazilian health protocols were robust and the situation would be quickly overcome.
Brazil, which exported more than five million metric tonnes of chicken products last year, first confirmed outbreaks of the highly pathogenic avian flu among wild birds in May 2023 in at least seven states.
The disease is not transmitted through the consumption of poultry meat or eggs, the Agriculture Ministry said.
"The Brazilian and world population can rest assured about the safety of inspected products, and there are no restrictions on their consumption," the ministry said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
ABC News
2 days ago
- ABC News
Authorities try to protect Australia's vulnerable wildlife as H5N1 bird flu approaches
Karl Hillyard is a busy man. As the South Australian Department for the Environment and Water's bird flu preparedness coordinator, he has been working with colleagues across the country and the world to prepare for the arrival of the H5N1 bird flu in Australia. The flu has had a devastating effect on birds and wildlife across much of the world, but has not yet reached Australia or New Zealand. However, it has been identified in most of the seal species in Antarctica. Dr Hillyard said he had a soft spot for the common and sometimes maligned ibis, but much of his work at the Cleland Wildlife Park in the Adelaide Hills was for the protection of rare birds. He said planning could be difficult when dealing with an evolving situation which had affected "mind-boggling" numbers of water birds and marine mammals. "Overseas in wildlife, there are some really tragic stories and impacts on particularly vulnerable and threatened species," Dr Hillyard said. A trial has started in the US to see if a vaccine against the flu has been effective in protecting the rare California condor. Research has also been carried out by the CSIRO to see if the vaccine could be used in small Australian bird species. Meanwhile, the first line of defence at Cleland will be social distancing of a sort, by making sure captive birds at the park are kept separate from wild birds as much as possible. Dr Hillyard said the "tyranny of distance" had protected Australia so far. "Effectively, sick birds, sick animals are going to struggle to make it here," he said. "And that's really sad. "But it's also what's probably been helping us out so far in Australia." He said work was also being done to assess where the virus might first arrive in South Australia. Wayne Boardman, from the University of Adelaide, said the virus had taken a circuitous route around the world since emerging in China in 1996. He said more wild bird and mammal deaths became apparent in Europe after a 2020 mutation which had spread to Africa and then North and South America. Dr Boardman said the virus would "almost certainly" arrive in Australia at some stage, potentially via islands in the sub-Antarctic or by migratory birds coming through the shorebird flyways from China and Southeast Asia. Dr Boardman said the virus had already caused a devastating loss of Peruvian pelicans and sandwich terns in Europe, and had occurred in more than 500 species of birds and more than 60 species of mammals. "We hope that these species will recover in time, but it could be that the virus is going to circulate for some time and will continue to cause mortality over the next five, 10, 15 years," he said. Dr Boardman said there were concerns that the disease could affect endangered species to the point where recovery would take a long time or could even lead to extinction. One of Dr Boardman's biggest concerns was for the remaining Australian sea lion population, which numbered less than 14,000 and lived mainly around South Australia's coastline. Dr Boardman's concern for the sealions is shared by Independent Member of the Legislative Council, Tammy Franks. Ms Franks has called for the state government to co-fund a field research station in the Coorong, where many thousands of migratory birds arrived each year. She said a 2024 outbreak of avian cholera in the wetland was only able to be confirmed because a fisherman delivered fresh carcasses to biosecurity officers within hours of the birds' death, when useful test samples could still be extracted. She said without the ability to sample and test on the ground in the Coorong, the opportunity to identify the arrival of avian flu could be missed. Coorong Environment Trust Board member Faith Coleman said a suitable property for a laboratory facility was available at Woods Well, on the banks of the south lagoon. She estimated the total cost of purchasing and establishing the facility would be about $1 million. "They [the state government] would only need to contribute a portion," she said. "It would be really helpful if they could meet us halfway." The Minister for the Environment and Water has been contacted for a response.
West Australian
6 days ago
- West Australian
Viridis, Ionic JV sends recycled metals to Brazilian magnet maker
A 50:50 joint venture between ASX-listed juniors Viridis Mining and Minerals and Ionic Rare Earths Limited - dubbed Viridion - has completed its first delivery of high-purity rare earth oxides to Brazil's only permanent magnet manufacturing facility. The delivery is the latest step in a plan to build a fully integrated mine-to-magnet supply chain. The JV partners say the move could reshape the rare earths game in Latin America. The shipment included critical magnetic elements such as neodymium, praseodymium, dysprosium and terbium, which were extracted from recycled end-of-life magnets sourced in Brazil. The material was processed at Ionic's Belfast facility and shipped back for trial magnet production at Brazilian not-for-profit FIEMG's Innovation and Technology Centre of Minas Gerais (CIT SENAI) in Lagoa Santa city. The centre's Lab Fab facility is the first of its kind in Latin America. Using advanced hydrometallurgical processing, Ionic transformed the old magnets into high-purity oxides of key magnetic metals. Magnets pulled from retired MRI machines and wind turbines could be given a second life as part of Viridium's push into recycled rare earths. The first shipment will support laboratory-scale alloy testing and magnet production. This is a crucial step in proving the recycled materials can meet the rigorous standards needed for electric vehicles, wind turbines and other high-performance technology. CIT SENAI expects to complete all tests with the recycled oxides during the second half of this year. The magnet manufacturer's move to experiment with recycled rare earth oxides is being funded by a broader, collaborative MagBras initiative, which was recently allocated US$13 million by the Brazilian government to finance the development of a low-carbon industrial ecosystem. The joint venture appears to have proved part one of its worth by delivering high-purity neodymium, praseodymium, dysprosium and terbium oxides to CIT SENAI. Management says if the oxides pass muster in the lab as a feedstock for magnet production, it will be a big step to building a regional supply chain and offering a real alternative to a China-dominated market. The timing also appears to be spot on with Brazil's national ambitions. The government recently launched an R$8 billion (US$1.4B) funding pool through two of its public finance outfits to boost domestic processing and manufacturing of strategic minerals. Viridion believes it is well-positioned to tap into this pipeline with its latest delivery milestone. FIEMG president Flávio Roscoe said the recycled material has the potential to meet up to 7 per cent of global magnetic rare earths demand, which would be a strategic breakthrough that could cut the nation's reliance on supply from China. Beyond Viridis' plans for setting up a local recycling facility in Brazil, its flagship Colossus project - also in Brazil - keeps delivering the goods. Recent tests revealed rare earth recoveries as high as 78 per cent have been pulled straight from soft clay using ammonium sulphate and water, without the need for blasting, acids or high temperatures. The simple, clean process also shows the mine could be capable of producing a high-purity product at what might be among the planet's lowest all-in sustaining costs. To get some definitive answers on the hard numbers, Viridis is racing ahead with a pre-feasibility study, due by the end of the second quarter. The company is also applying for a plant construction licence and is in advanced talks with potential offtake companies. If all goes to plan, Viridis could be on track to anchor South America's first fully integrated rare earth supply chain - from mine to magnet and recycling - linking the heart of Brazil to the global EV surge. In a world gripped by geopolitical risk and critical mineral shortfalls, Viridis appears to be quietly crafting a rare earth advantage built on security, sustainability and, potentially, some sound economics. Is your ASX-listed company doing something interesting? Contact:
West Australian
6 days ago
- West Australian
Businesses are finding a workaround for tariffs — and it's entirely legal
Businesses are finding a workaround to minimise the most significant hit from tariffs, using a decades-old piece of legislation known as the 'first sale rule'. Within US customs law, the first sale rule allows US importers to use the price of the first sale in a number of transactions to calculate customs duties. For instance, a Chinese manufacturer sells a T-shirt to a Hong Kong vendor for $US5. That Hong Kong vendor then sells the T-shirt to a US retailer for $US10. That US retailer then sells the T-shirt to consumers for $US40. Under the first sale rule, the US retailer can pay the import duty on the initial $US5 price of the good, rather than the vendor's inflated $US10, thus stripping out the cost associated with the middleman's profit. 'What the rules allow you to do is use that initial sales price from the factory to the vendor to determine the final duty price,' Brian Gleicher, senior lawyer and member at Miller & Chevalier Chartered, said. The first sale rule has been around since 1988, but gained renewed attention under US President Donald Trump's first administration and, now, during his latest tariff regime. 'When the first administration had 25 per cent tariffs [on China in 2018], that's when we started getting calls. Now with the new tariffs, the first sale rule has started coming up again,' Sid Paruthi, partner at US consulting firm Moss Adams, said. 'It's been around for a very long time but ... everybody's beginning to explore it with more interest,' Gleicher said. Here are the criteria businesses must fulfil to apply the rule: For some companies, that can be easier said than done. Typically, the default duty imposed by US customs is based on the import price of a good, putting the burden of proof on the importer to demonstrate the initial cost of that item. That may not always be something a vendor is willing to reveal. 'If you're an importer, you need to get that first sale price. You need to have the data,' Gleicher said. 'Vendors may not want to give that information.' Rich Taylor, a corporate business development consultant based in Chinese hub Ningbo who has been advising Fortune 500 companies on the first sale rule since Trump's first term, noted 'there has to be a level of trust between all parties' because of the risks involved. Nevertheless, the additional complexities can be worthwhile, given the potential cost savings. 'You [suppliers] are keeping your customer. You're showing them that you're trying to give them every tool to reduce their cost,' Taylor said. 'If you don't use it, then the end cost is going to go up. And if your competitor is using the [first sale] rule, then you're going to lose you that advantage over them.' Companies appear to be cluing into that. While the first sale rule is broadly applicable across products and industries, it is considered particularly useful in higher-value consumer goods and luxury products, where margins are greater. Last month, Italian luxury fashion brand Moncler flagged the first sale rule as providing 'significant benefit' to its cost structure. 'First cost [sale], of course, the industrial cost ... is much lower than the retail price, and it is about 50 per cent of the intercompany price. So, of course, it's a significant benefit,' Luciano Santel, executive director and chief corporate and supply officer at Moncler, told investors during an April 16 earnings call. Swiss-headquartered biotech Kuros Biosciences earlier this month said that it was altering its operations, which would allow it to adopt the first sale policy. 'What we will now do is we will switch in between Zurich as a wholesaler hub ... which in essence means we can adapt the so-called first sale method,' Daniel Geiger, chief financial officer of Swiss-headquartered biotech Kuros Biosciences, said during a May 13 earnings call. During first-quarter earnings calls, US BBQ-maker Traeger and manufacturing firm Fictiv also both cited first sale as 'supply chain mitigants' and means to 'minimise tariff and duty costs,' respectively. Use of the first sale rule, while perfectly legal, nevertheless could undermine the Trump administration's efforts to boost tariff revenue and boost onshoring of manufacturing. The White House did not respond to CNBC's request for comment on use of the first sale rule and its implications for tariff policy. US Customs and Border Protection said it could not provide data on the recent use of the first sale rule by importers. CNBC
