Brazil chicken exporters brace for cargo rejections amid bird flu outbreak
In an interview, ABPA president Ricardo Santin told Reuters the rejection of cargoes may vary according to the date of shipment before outbreak's confirmation, ranging from 14 to 28 days at the discretion of the destination countries' official veterinary services.
The situation puts meat processors including BRF SA (BRFS3.SA), opens new tab and JBS SA (JBSS3.SA), opens new tab in a tight spot, as they deal with additional logistics costs and uncertainty related to the extent of ongoing trade embargos triggered by the health emergency.
Brazil accounts for 39% of the global chicken trade, Santin said, citing fresh trade data.
The easing of restrictions for cargos in transit is a possibility, Santin said, particularly if the cargo comes from a region faraway from the outbreak, which was in Rio Grande do Sul state.
"But that will require negotiations," Santin said. Mexico and Chile are among countries which would also reject cargoes under existing health protocols related to bird flu outbreaks, he added.
It is not possible to calculate losses stemming from export restrictions in force after confirmation of the first bird flu outbreak on a Brazilian commercial chicken farm, Santin said.
That is because the scope and duration of trade bans may vary according to health protocols and negotiations with importing nations, Santin said. will
Some health protocols foresee regional or even local export bans, while others call for a nationwide suspensions. Under existing protocols, Brazil stopped issuance of health certificates nationwide for cargoes destined to China, European Union and South Africa.
However, other major importers like Japan, the United Arab Emirates and Saudi Arabia are less strict and enforce regional bans under the existing protocols.
Santin said it is up to the exporting companies to deal with returned cargoes, adding they also have the possibility of redirecting some consignments.
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