Brazil Chicken Exports Hit by In Transit Rejections
China and Other Nations Reject In-Transit Brazilian Chicken Cargoes Over Bird Flu
Brazil’s poultry industry is facing immediate logistical and financial challenges as countries, including China, are rejecting chicken consignments already in transit following the confirmation of Brazil’s first bird flu outbreak on a commercial farm.
Ricardo Santin, president of the Brazilian meat lobby ABPA, stated on Tuesday that the rejection of these cargoes, representing 39% of the global chicken trade, will vary from 14 to 28 days based on the shipment date and the discretion of destination countries’ veterinary services. This situation places major meat processors like BRF SA and JBS SA in a “tight spot,” dealing with increased logistics costs and significant uncertainty.
The outbreak in Montenegro, Rio Grande do Sul state, triggered health protocols leading to rejections from countries such as China, Mexico, and Chile, among others. Santin noted that easing these restrictions for in-transit cargo, particularly from regions distant from the outbreak zone, is a possibility but will necessitate negotiations.
Santin highlighted the difficulty in calculating precise losses due to the varied scope and duration of trade bans, which depend on individual health protocols and ongoing talks with importing nations. He recalled that China had imposed a nationwide ban on Brazilian chicken for approximately three weeks last year following a Newcastle disease case, also in Rio Grande do Sul, before narrowing it to a state-wide restriction.
Original source: ReutersÂ
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