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Reuters
21-05-2025
- Business
- Reuters
In food inflation-hit Brazil, bird flu may offer some relief
BRASILIA, May 20 (Reuters) - Poultry trade bans triggered by a bird flu outbreak in Brazil may weigh on domestic chicken prices, offering some relief - if even short-lived - from the food inflation that has undermined the government's popularity, analysts said. Brazil, the world's largest poultry exporter, ships about a third of its chicken meat abroad, industry group ABPA said. And Rio Grande do Sul, where the first outbreak was identified, accounted for about 12% of chickens slaughtered last year, according to government data. The World Organisation for Animal Health on Wednesday encouraged the use of zoning, a method that focuses disease controls on affected regions rather than an entire country, to contain the disease's spread in Brazil while maintaining trade. But with dozens of countries suspending imports of all Brazilian chicken or shipments from Rio Grande do Sul, exporters are scrambling to redirect shipments. Major poultry producers such as BRF SA ( opens new tab and JBS SA ( opens new tab are likely to face short-term oversupply issues, analysts at brokerage XP told clients. Some of Brazil's exports will find new foreign buyers, but the domestic market is likely to absorb more supply, said Jose Carlos Hausknecht, a partner at consultancy MB Agro. The glut could depress prices depending on how long export restrictions last. "It should be a small and short-lived effect," he said. "Then things go back to normal." Agriculture Minister Carlos Favaro, who first highlighted the outlook for lower domestic trade prices as trade bans came into effect, has since walked back the significance of that price impact. Food inflation has haunted the government of President Luiz Inacio Lula da Silva, hurting his chances of re-election next year, as consumer prices rose 5.5% in the 12 months through April. Food prices, the heaviest component in the inflation basket, climbed 7.8% during the period, with poultry and egg prices surging 12.3%, according to statistics agency IBGE. Andre Braz, who tracks prices at think tank FGV Ibre, said it is still too early to forecast inflation relief, as poultry firms are also likely to reduce output if domestic prices fall below production costs. And any disinflationary impact would likely be marginal, said Adenauer Rockenmeyer, an economist and coordinator of the Agribusiness Forum at Sao Paulo's regional economics council. "And if this outbreak is not contained and spreads to other farms, it could lead to mass culling, affecting not only chicken but also egg supplies," he warned, which could eventually increase inflationary pressures.
Reuters
20-05-2025
- Business
- Reuters
Brazil chicken exporters brace for cargo rejections amid bird flu outbreak
SAO PAULO, May 20 (Reuters) - Countries, including China, will not accept chicken consignments in transit from Brazil following confirmation of the country's first bird flu outbreak, Brazilian meat lobby ABPA, which represents large food processors, said on Tuesday. 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 ( opens new tab and JBS 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.
South China Morning Post
20-05-2025
- Health
- South China Morning Post
Brazil urges China to limit chicken import ban to city with bird flu outbreak
Brazil 's government has asked China to restrict its embargo on chicken imports to products just from the city of Montenegro, where the South American country last week registered an outbreak of bird flu on a commercial farm, newspaper Folha de reported on Tuesday. On Friday, Brazil reported its first ever outbreak of highly pathogenic bird flu, on a commercial breeding farm in Montenegro, in the state of Rio Grande do Sul, prompting a scramble to trace the virus in the country, as well as a slew of international trade bans. China, a major consumer of Brazilian poultry, immediately suspended imports following the news. The Asian country bought more than 10 per cent of Brazil's 5.3 million metric tons of chicken exports in 2024, according to national pork and poultry group ABPA. Health and safety agents setting up disinfection barriers to contain the first confirmed case of bird flu in commercial poultry, in the municipality of Montenegro, Rio Grande do Sul state, Brazil, on May 17. Photo: AP Chinese customs authorities said imports of poultry products imported from Brazil, shipped on or after May 17, have been suspended.
Reuters
20-05-2025
- Business
- Reuters
Brazil asks China to limit chicken embargo to city with bird flu outbreak, local media says
SAO PAULO, May 20 (Reuters) - Brazil's government has asked China to restrict its embargo on chicken imports to products just from the city of Montenegro, where the South American country last week registered an outbreak of bird flu on a commercial farm, newspaper Folha de reported on Tuesday. On Friday, Brazil reported its first ever outbreak of highly pathogenic avian influenza, or bird flu, on a commercial breeding farm in Montenegro, in the state of Rio Grande do Sul, prompting a scramble to trace the virus in the country, as well as a slew of international trade bans. China, a major consumer of Brazilian poultry, immediately suspended imports following the news. The Asian country bought more than 10% of Brazil's 5.3 million metric tons of chicken exports in 2024, according to national pork and poultry group ABPA. Other countries that banned imports of Brazilian chicken following the detection of bird flu include the European Union and South Korea. Deals with other buyers like Japan, the United Arab Emirates and Saudi Arabia provide for local trade restrictions. Chinese customs authorities said imports of poultry products imported from Brazil, shipped on or after May 17, have been suspended. However, according to Folha, Brazil's embassy in Beijing has approached Chinese authorities to see if the restricted exports could be limited to those products hailing solely from Montenegro, citing the country's efforts to prevent the disease from spreading. "Brazil would like to respectfully explore the possibility of a regionalized approach to this incident, in alignment with the principles of the WOAH (World Organization for Animal Health) and the procedures provided for in the bilateral protocol regarding chicken meat," Folha quoted the embassy as saying. The Brazilian Ministry of Agriculture did not have an immediate comment.
Japan Today
16-05-2025
- Health
- Japan Today
World's biggest poultry exporter Brazil confims bird flu outbreak
FILE PHOTO: Talita de Lima Freitas, federal agricultural inspector, works on a sample to test for avian influenza virus at the Reference Laboratory of the World Organization for Animal Health in Campinas, Brazil April 25, 2023. REUTERS/Amanda Perobelli/File Photo By Isabel Teles, Ana Mano and Roberto Samora Brazil, the world's largest poultry exporter, confirmed its first outbreak of bird flu on a commercial farm on Friday, triggering a ban on shipments to China and raising the prospect of restrictions from other trade partners. Brazil exported $10 billion of chicken meat in 2024, accounting for about 35% of global trade. Much of that came from meat processors BRF and JBS, which ship to some 150 countries. China, Japan, Saudi Arabia, South Africa 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 poulty imports from the country for 60 days, but that Brazilian chicken in transit to other countries would not face problems. Chinese customs did not immediately respond to a Reuters request for comment outside of business hours. The outbreak occurred in the city of Montenegro in Brazil's southernmost state of Rio Grande do Sul, the agriculture ministry said. The state accounts for 15% of Brazilian poultry production and exports, national pork and poultry group ABPA said in July 2024. BRF had five processing plants operating in the state as of May 2024. JBS has also invested in chicken processing plants in Rio Grande do Sul under its Seara brand. The veterinary officials have begun isolating the area of the outbreak in Montenegro and culling the remaining birds, in line with protocol, the state agricultural secretariat said. "A complementary investigation will be carried out within an initial radius of 10 km (6 miles) from the area where the outbreak occurred, and into possible links with other properties," the secretariat said. The ministry also said it was acting to contain and eradicate the outbreak, officially notifying the World Organization for Animal Health, Brazil's trade partners and other interested parties. "All necessary measures to control the situation were quickly adopted, and the situation is under control and being monitored by government agencies," industry group ABPA said in a statement. Asked for a company response, JBS deferred to ABPA. Miguel Gularte, CEO of BRF, told a call with analysts he was confident Brazilian health protocols were robust and "this episode" would be quickly overcome. Since 2022, bird flu has swept through the U.S. poultry industry, killing around 170 million chickens, turkeys and other birds, severely affecting production of meat and eggs. Bird flu has also infected nearly 70 people in the U.S., with one death, since 2024. Most of those infections have been among farmworkers exposed to infected poultry or cows. The further spread of the disease raises the risk that bird flu could become more transmissible to humans. Brazil, which exported more than 5 million metric tons 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 in a statement. "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. © Thomson Reuters 2025.
