Brazil, the top global exporter of poultry, has voluntarily halted its poultry exports to approximately 44 countries on 19th July 2024, following the detection of the Newcastle viral disease in Rio Grande do Sul, the southern state of the country. Newcastle viral disease, which affects domestic and wild birds, was detected on a poultry farm on 17th July 2024 in the municipality of Anta Gorda.
The suspension of exports was implemented after the Ministry of Agriculture and Livestock confirmed the outbreak of disease. Also, complete suspension of Brazilian exports of poultry meat and eggs to its key destinations such as China, Mexico, and Argentina, has been imposed from 19th July.
Approximately, 7,000 birds were culled on a chicken farm in Brazil’s in Rio Grande do Sul on 18th July. According to the Ministry of Agriculture and Livestock (MAPA), all the poultry-related exports from the state to all the importing regions are suspended for 90 days. Export restrictions to other regions such as the EU, the UK and several other destinations have been put in place on a regional basis depending on proximity to the affected farm. In H1-2024, the state shipped 354,000 tonnes of poultry meat, approximately 15% of total Brazilian poultry exports. On average, Brazil exports 430,000 tons of poultry products per month. Some of the top processors in the affected state have indicated reallocating production volume to the other production plants across the country to achieve uninterrupted production and exports.
Overall, the viral disease could cause temporary supply disruption as Brazil is the largest exporter of poultry meat to the global market. Expana price for chicken in Brazil reached $1.3/kg, up 1.6% month-on-month and 10.6% year-on-year on 19th July 2024. According to market sources, Brazilian poultry prices are likely to be highly volatile in the global market considering the potential supply disruption in the country. The export price for poultry meat could increase dramatically in the short term.
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