Chicken meat embargo expected to affect global prices

Brazil has recorded its first case of bird flu on a commercial farm, prompting a series of bans on the country's chicken exports. China, the main destination for Brazilian exports, was the first to suspend purchases for up to 60 days, followed by the European Union.

The economic impact is significant. Last year alone, China imported half a million tons of Brazilian chicken. The disruption represents an estimated cost of $100 million per month for the industry, slowing the recent growth in trade between the two countries.

Government and industry response

The Ministry of Agriculture and Livestock declared a health emergency after the case was confirmed. Carlos Fávaro, the minister of the department, stated that some countries will not decree a general suspension of imports due to new health protocols. “With these countries that we were able to advance in the review, the trade restriction will first take place in the state of Rio Grande do Sul, then only within a 10-kilometer radius,” explained Fávaro.

The Brazilian Animal Protein Association said it is confident the government will be able to lift the embargoes quickly. Last Tuesday, the organization celebrated the opening of the Chinese market to three new poultry products.

Global impact

Brazil is the world's largest exporter of chicken meat, responsible for one-third of all poultry protein consumed globally. The blockade of Brazilian exports is expected to raise the price of chicken meat worldwide.

The affected farm is located in the municipality of Monte Negro, about 60 kilometers from Porto Alegre. The birds were slaughtered and a sanitary blockade was implemented in the region. The eggs produced by the farm are also being tracked. In addition, health authorities in Rio Grande do Sul reported that an outbreak of avian flu was also found in birds at the Porto Alegre zoo.

The situation in Brazil is reminiscent of similar cases in other countries. In the United States, for example, the slaughter of 120 million birds had a political impact on the popularity of leaders, with an increase in the price of eggs and a shortage of the product in the markets.