Brazil’s poultry industry is in a tough spot following the country’s first outbreak of bird flu on a commercial farm. As the world’s largest chicken exporter, Brazil’s trade ties, particularly with major importers like China, hang in the balance.
Trade Implications
The discovery of bird flu in Rio Grande do Sul on 16 May 2024 led to immediate reactions from countries that import Brazilian chicken. China, which represents over half of Brazil’s chicken exports, announced a nationwide ban, along with the European Union and South Korea.
- Exports: Brazil exported around US$10 billion (S$13 billion) of chicken meat in 2024, a staggering 35% of global trade.
- Impact: The outbreak could reduce Brazilian chicken exports by 10% to 20% if not contained swiftly.
Regional Responses
Brazilian Agriculture Minister Carlos Favaro stated that many major consumers are expected to adopt more flexible measures if the situation is controlled. Countries like Japan and the UAE may only ban imports from the affected areas rather than imposing a blanket suspension on all Brazilian poultry.
The outbreak, which has resulted in the death of 17,000 farm chickens, is under intense scrutiny as veterinary teams isolate the infected area and monitor for further cases.
Global Context
This bird flu incident is not isolated. The United States has been grappling with its own bird flu crisis since 2022, which has already claimed around 170 million birds. The potential for further outbreaks raises concerns over how easily the virus could spread and affect human health—even if poultry consumption remains safe, as stated by the Brazilian Agriculture Ministry.
The Road Ahead
Brazil is adamant about controlling the situation and reopening trade quickly. The global demand for chicken remains robust, which could sway countries back to their usual purchasing patterns.
In the grand scheme, Brazil’s diplomatic ties with China and streamlined communication efforts may ease trade barriers, mirroring strategies that have previously helped manage similar situations in Argentina.
As Brazil navigates this challenged landscape, the poultry industry holds its breath, hoping for a swift resolution.