Meanwhile, Brazil recently confirmed its first outbreak of bird flu on a large commercial farm, sending shockwaves around the world. Brazil has taken the lead as the world’s biggest chicken exporter. By 2024, its poultry sector will add at least $10 billion of additional chicken meat to the global supply. The outbreak could potentially devastate a sector responsible for nearly 35% of global chicken trade.
According to the World Organization for Animal Health, this highly pathogenic avian influenza virus is currently circulating. This confirmation followed the receipt of positive tests from a reference laboratory in Brazil. Needless to say, the outbreak has resulted in statewide restrictions implemented almost immediately with the purpose of limiting virus spread and infection. These measures are key foundational pieces. They harm local producers and drastically impact the global market that depends on Brazilian poultry.
In retaliation to the outbreak, China has placed a temporary, country-wide trade ban on all chicken products from Brazil. This decision is especially important in light of the fact that China is one of the largest and fastest growing importers of Brazilian poultry. The ban highlights the potential economic costs to Brazil—the nation has developed a strong market in exports over recent years.
Japan and Saudi Arabia are some of the largest buyers of Brazilian chicken, which adds to the precariousness. China’s restrictions may produce a crucial onward effect. This will hinder our ability to negotiate favorable trade agreements with other countries and secure valuable new export markets. To put it mildly, Brazil is walking a tightrope. At the same time, the poultry industry prepares for millions in expected economic losses as demand from major markets dries up.
The Brazilian government has been in constant contact with agricultural authorities to closely monitor the situation and put in action required biosecurity measures. Industry experts charge that time is of the essence to prevent future occurrence and outbreaks and to reassure consumers that Brazilian poultry products are safe to eat. How the country responds to this crisis will be especially important. Success will position it to hold on to its top-5 status on the global chicken export stage.