May 7, 2021

Saudi Arabia suspends poultry imports from Brazil

Saudi Arabia has suspended poultry imports from 11 Brazilian processing plants without any prior notice or explanation, Bloomberg reported.

According to the joint statement from Brazil's foreign affairs and agriculture ministries, Brazil may take this case to the World Trade Organisation if an undue trade barrier is proven. Officials in Brazil are discussing with their Saudi Arabia counterparts for clarification.

Saudi Arabia's suspension comes as the Brazilian chicken industry is facing rising costs from surging corn prices and declining domestic demand for the meat, as COVID-19 has affected purchasing power and resulted in increased unemployment.

The industry group Brazilian Association of Animal Protein (APBA) said 11% of Brazil's poultry exports in 2020 were to Saudi Arabia.

The Brazil government said the 11 plants suspended for exports have been previously approved for shipments, based on a Saudi Arabia's Food and Drug Authority published list. 

JBS SA, a major Brazilian meatpacker, said it has contacted the health authority of Saudi Arabia to discuss about the suspension. The company said it has diverted poultry to other markets.

- Bloomberg