February 23, 2006

Bird flu rattles the Brazilian poultry industry

Despite the absence of bird flu in Brazil, its effects from the European market is keenly felt just the same. In fact, the country is already feeling the heat from falling chicken sales in Europe and Asia.

Brazil's Chicken Exporter Association (ABEF) reports that while last year's exports remain strong, contracts for future sales and prices are declining. With bird flu shutting down markets in various countries, there is a glut of supply and buyers are clamouring for lower prices, said Ricardo Gonçalves, ABEF executive president.

Brazil exports around half of its poultry production, with a 43 percent market share of global sales. 40 percent of all baby chicks born in Brazil are exported. Ariel Mendes of the Brazil Poultry Union said that pressure on prices is a harbinger of worse to come. In Brazil's capital of Sao Paulo, chickens are already selling below cost price, he added.