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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.
Time of India
16-05-2025
- Health
- Time of India
Brazil confirms first outbreak of avian influenza on commercial farm
Sao Paulo: Brazil, the world's largest poultry exporter, confirmed its first outbreak of avian influenza on a commercial farm in a statement from the Agriculture Ministry on Friday, raising the prospect of restrictions from trade partners. The outbreak occurred in the city of Montenegro in Brazil's southernmost state of Rio Grande do Sul, the ministry said. Brazil exported $10 billion of chicken meat in 2024, accounting for about 35% of global trade, much of it sold by BRF and JBS SA, which ship to some 150 countries. "All necessary measures to control the situation were quickly adopted, and the situation is under control and being monitored by government agencies," said national pork and poultry group ABPA in a statement. The ministry said it was taking the necessary measures to contain and eradicate the outbreak, officially notifying the World Organization for Animal Health, Brazil's trade partners and other interested parties. The country, 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. In June of that year, Japan suspended purchases of poultry from the state of Espirito Santo, following an outbreak there on a non-commercial farm. The disease is not transmitted through the consumption of poultry meat or eggs, the farm ministry said, noting that the risk of human infection is low and mostly occurs among professionals who have contact with infected birds. "The Brazilian and world population can rest assured about the safety of inspected products, and there are no restrictions on their consumption," the statement said. According to the ministry, the Brazilian veterinary service has been trained and equipped to deal with this disease since the first decade of the 2000s. Actions include monitoring wild birds, epidemiological surveillance in commercial and subsistence poultry farming, and constant training of technicians, it said.
Yahoo
15-05-2025
- Business
- Yahoo
Weight-Loss Drugs Providing a Boost to US Meat Demand, JBS Says
(Bloomberg) -- JBS SA said demand for meat is benefiting from an unlikely source: weight-loss drugs. As Coastline Erodes, One California City Considers 'Retreat Now' How a Highway Became San Francisco's Newest Park Maryland's Credit Rating Gets Downgraded as Governor Blames Trump Power-Hungry Data Centers Are Warming Homes in the Nordics NYC Commuters Brace for Chaos as NJ Transit Strike Looms People on GLP-1 medication seem to be adding more protein to their diets, further increasing demand for chicken and beef at a time when supplies are tight, Gilberto Tomazoni, chief executive officer of the world's largest meat supplier, said at the BMO Farm to Market conference in New York. The so-called Ozempic Revolution has wiped billions off the market value of food and drink companies as consumers under appetite-suppressing drugs cut down on grocery expenses. Still, some segments of the industry stand to gain. Danone SA said it was seeing a jump in demand for its high-protein, low calorie yogurts in the US as a result of the obesity-treatment craze. Tomazoni said consumers using GLP-1 drugs are likely increasing their protein intakes in order not to lose muscle mass. Meat companies including JBS have seen profits jump amid strong demand for chicken. Cartoon Network's Last Gasp DeepSeek's 'Tech Madman' Founder Is Threatening US Dominance in AI Race As Nuclear Power Makes a Comeback, South Korea Emerges a Winner Why Obesity Drugs Are Getting Cheaper — and Also More Expensive Tariffs Won't Reindustrialize America. Here's What Will ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Mint
13-05-2025
- Business
- Mint
JBS Profits Jump as Chicken More Than Offsets Beef Downturn
(Bloomberg) -- JBS SA said quarterly profits rose more than expected, with chicken making up for the bulk of the increase as the world's largest meat supplier faces deepening losses at its US beef business. Adjusted net income for the three months ended in March rose 78% from a year earlier to 2.92 billion reais ($520.7 million), the Brazilian company said in a statement. That compares with the 2.79 billion real average of analyst estimates compiled by Bloomberg. The result underscores how chicken has become a lifeline for major meat suppliers including Tyson Foods Inc. and Cargill Inc. as a severe shortage of cattle in the US inflates their costs and wipes out profits from beef processing. Roughly 71% of JBS's earnings before items such as interest and taxes in the first quarter came from its chicken operations in North America and Brazil, which benefited from cheaper feed costs and strong consumer demand. That compares with 57% a year earlier. The boom in chicken won't be fading anytime soon, according to JBS Chief Executive Officer Gilberto Tomazoni. 'We've seen a very strong demand, I see a very positive year for chicken and pork,' he said in an interview Tuesday, also citing supply constraints. JBS said its North American beef business, the company's largest, had a loss of $112.9 million in the first quarter as surging prices for the meat it sells were more than offset by record cattle costs. Still, profits for JBS's beef operations in Brazil and Australia rose from a year earlier. The company, which is based in Sao Paulo, is in the final stages of a longstanding plan to trade its shares in New York after receiving a green light by US regulators last month. The meat producer will go to minority shareholders for a vote on May 23. JBS says the move will broaden its access to capital and give it more flexibility to use equity as a source of funding. JBS shares have soared 85% over the past year to record levels in April. JBS's free cash flow was negative 5.4 billion reais in the first quarter, from negative 3.1 billion reais a year ago, due mainly to higher tax payments. (Updates with CEO quote in fifth paragraph.) More stories like this are available on
