Countries like China will not accept shipments of chicken meat from Brazil that were already on ships en route to their destination amid the country's first outbreak of bird flu, the Brazilian Animal Protein Association (ABPA), which represents major food processing companies, said on Tuesday.
In an interview, ABPA president Ricardo Santin told Reuters that the rejection of shipments may vary according to the date of shipment. This analysis considers the period prior to confirmation of the outbreak, which can vary from 14 to 28 days. The decision is at the discretion of the official veterinary services of the destination countries.
The situation puts meat processing companies, including BRF and JBS, in a difficult position. They face additional logistics costs. In addition, they are dealing with uncertainty about the extension of ongoing trade embargoes triggered by the health emergency.
Affected exports and country responses
Brazil accounts for 39% of global chicken meat exports, Santin said, citing new trade data.
Relaxing restrictions on cargo in transit is a possibility, Santin said, especially if the cargo comes from a region far from the outbreak, recorded in Rio Grande do Sul.
“But that will require negotiations,” Santin said.
Mexico and Chile are among the countries that would also reject cargo under existing health protocols related to bird flu outbreaks, he added.
Export Impact and Protocols
It is not possible to calculate losses resulting from export restrictions in place after the confirmation of the first outbreak of bird flu on a Brazilian commercial farm, Santin said.
This is because the scope and duration of trade bans can vary depending on health protocols and negotiations with importing countries, Santin said.
Some health protocols provide for regional or even local bans on exports, while others provide for country-wide suspensions.
In accordance with existing protocols, Brazil has suspended the issuance of health certificates throughout the country for cargo destined for China, the European Union and South Africa, for example.
However, other major importers such as Japan, the United Arab Emirates and Saudi Arabia are less stringent and apply regional bans in line with existing protocols.
Santin said it is up to exporting companies to deal with returned cargo, adding that they also have the option of redirecting some shipments.
Source: Ana Mano and Roberto Samora | Notícias Agrícolas
