Brazil, the world’s top poultry exporter, is poised to demonstrate increased export volumes in 2023, with statistics up to November of the previous year indicating a 5.6% growth in poultry exports. The primary destination for Brazilian chicken in 2023 was China, followed closely by South Africa, which showed the second-largest increase in poultry imports from Brazil.
According to WattPoultry, over the January to November period, Brazil experienced a 28% year-on-year increase in poultry exports, amounting to over 632 000 metric tonnes. Notable increases in chicken imports were observed in South Africa (309 000mt; +21%) and Mexico (173 000mt; +28%).
By November, Brazil had earned $9 billion from its poultry sales of 4.68 million tonnes, with expectations of the year-end total surpassing 5 million tonnes.
However, concerns have arisen regarding the potential impact of bird flu on Brazil’s commercial poultry industry and its implications for South African imports. Brazil supplies a staggering 90% of all poultry imports into the country, making the issue of avian influenza a critical consideration for trade between the two nations.
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SAPA considers options amidst bird flu threat
The latest Poultry Bulletin, the official journal of the South African Poultry Association (SAPA), highlighted three potential courses of action in the event of a bird flu outbreak in Brazil. These options include a complete ban on all Brazilian poultry imports, a targeted ban only on affected areas, or allowing imports with specific conditions, such as heat treatment either before or after entry into South Africa.
SAPA CEO Izaak Breitenbach, in the Poultry Bulletin article, stated, “Unless and until a new policy is approved, all Brazilian poultry imports will be banned if any commercial flock is affected by bird flu.”
One of the main challenges lies in the import of mechanically deboned meat (MDM), constituting 60% of Brazil’s poultry exports to South Africa. MDM is a crucial ingredient in the production of processed meats like polonies and sausages. In 2022, South Africa imported R2 billion worth of MDM, and in 2023 imports were even higher.
“Importers are lobbying in advance for that trade to continue if Brazil is hit by bird flu,” Breitenbach said. He noted, “Brazil and Argentina have asked South Africa to allow MDM to be heat treated on arrival, which could lead to potentially infected meat landing in this country.” However, this proposal has been rejected by the department of agriculture, land reform and rural development which insists on heat treatment before export from Brazil.
Compartmentalisation, another potential solution, involves dividing Brazil into different poultry regions, allowing disease-free compartments to continue exports. Breitenbach emphasised that “unless and until that is approved, all Brazilian poultry imports will be banned in the event of a bird flu outbreak.”
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Brazilian poultry industry coining it
Reuters this week reported that despite the threat of bird flu, Brazilian meat exporters achieved a record 5.138 million metric tons of chicken product shipments in 2023. Brazil, considered free of Highly Pathogenic Avian Influenza (HPAI), has never recorded an outbreak on a commercial poultry farm, distinguishing it from other major poultry-producing countries.
This status enables Brazil to avoid trade bans under guidelines from the World Organisation for Animal Health (OIE). In 2023, chicken export revenues for Brazil reached an unprecedented $9.79 billion, reflecting a 6.6% rise from 2022.
“While facing challenges, including a scenario with marked variations in markets and production costs, the result is highly positive,” said ABPA president Ricardo Santin. “For the first time, we surpassed the mark of 5 million tonnes of chicken exported.”
South Africa, however, remains vigilant, closely monitoring the situation and assessing potential measures in response to any future developments in Brazil’s poultry industry.
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