April 10, 2006

Brazil to spend US$46 million to fight bird flu as exports decline

Brazil, the world's biggest poultry exporter, would budget 100 million reals (US$46.4 million) this year to prepare for any outbreaks of bird flu in the country, said Agriculture Minister Roberto Rodrigues.

The money would be used for labs, vaccines, equipment and training of officials to monitor migratory birds, the minister added.

Brazil's President Luiz Inacio Lula da Silva said the country expects to be free of bird flu this year, adding that the probability of the virus entering the country is low.

Perhaps that is why that money may not be as forthcoming as expected. It would be tough to get Brazil's legislature to approve this year's budget because of spending curbs, Zoe Silveira D'Avila, head of the Brazilian Poultry Producers Union, said.

D'Avila estimated Brazilian chicken exports have already fallen short of first quarter forecasts because consumers in the European Union and other major importers were avoiding poultry.

Two-fifths of the world's chicken exports come from Brazil. The country exported 2.7 million tonnes of poultry last year. Exports are expected to take a hit this year instead of a forecasted 10 percent growth, said Ricardo Goncalves, president of the Brazilian Association of Poultry Producers and Exporters.

Reduced demand for poultry from importing countries has led Brazilian producers to lower production, with output expected to fall as much as 25 percent in the first half of the year.

Brazil's poultry production last year hit a record of 10 million tonnes, according to a USDA report.