January 17, 2007

Shares of Brazil's poultry companies fall on news of Asian bird flu
 

Shares of Brazil's two main meatpackers Sadia and Perdigao took a beating after more bird flu outbreaks were reported in Asia.

It was apparent that the market feared Asian consumers would shun chicken products hence slashing the chicken exports from the companies.

In New York, American Depositary Receipts of Perdigao and Sadia were down 7.5 percent and 7 percent to US$25.35 and US$31.55, respectively. The companies' shares also registered sharp losses on the Sao Paulo Stock Exchange.

Analysts believed that so long as the virus is contained in Asia, there could be export opportunities.