Brazil exported $10 billion of chicken meat in 2024, accounting for about 35% of global trade. Much of that came from meat processors BRF and JBS, which ship to some 150 countries.
China, Japan, Saudi Arabia, South Africa and the United Arab Emirates, are among the main destinations for Brazil's chicken exports.
Brazil's Agriculture Minister Carlos Favaro said on Friday China had banned poulty imports from the country for 60 days, but that Brazilian chicken in transit to other countries would not face problems.
Chinese customs did not immediately respond to a Reuters request for comment outside of business hours.
The outbreak occurred in the city of Montenegro in Brazil's southernmost state of Rio Grande do Sul, the agriculture ministry said. The state accounts for 15% of Brazilian poultry production and exports, national pork and poultry group ABPA said in July 2024.
BRF had five processing plants operating in the state as of May 2024. JBS has also invested in chicken processing plants in Rio Grande do Sul under its Seara brand.
The veterinary officials have begun isolating the area of the outbreak in Montenegro and culling the remaining birds, in line with protocol, the state agricultural secretariat said.
"A complementary investigation will be carried out within an initial radius of 10 km from the area where the outbreak occurred, and into possible links with other properties," the secretariat said.
The ministry also said it was acting to contain and eradicate the outbreak, officially notifying the World Organisation for Animal Health, Brazil's trade partners and other interested parties.
"All necessary measures to control the situation were quickly adopted, and the situation is under control and being monitored by government agencies," industry group ABPA said in a statement.
Asked for a company response, JBS deferred to ABPA.
Miguel Gularte, Chief Executive Officer of BRF, told a call with analysts he was confident Brazilian health protocols were robust and "this episode" would be quickly overcome.
Since 2022, bird flu has swept through the United States (US) poultry industry, killing around 170 million chickens, turkeys and other birds, severely affecting production of meat and eggs.
Bird flu has also infected nearly 70 people in the US, with one death, since 2024. Most of those infections have been among farmworkers exposed to infected poultry or cows.
The further spread of the disease raises the risk that bird flu could become more transmissible to humans.
Brazil, which exported more than 5 million metric tons of chicken products last year, first confirmed outbreaks of the highly pathogenic avian flu among wild birds in May 2023 in at least seven states.
--Reuters--
