Brazil, the world's largest chicken exporter, confirmed its first outbreak of bird flu on a commercial farm on Friday, triggering a country-wide trade ban from China and state-wide restrictions for other major consumers.
Brazil exported $10 billion of chicken meat in 2024, accounting for about 35% of global trade. Much of that came from meat processors BRF (BRFS3.SA) and JBS (JBSS3.SA), which ship to some 150 countries.
China, Japan, Saudi Arabia and the United Arab Emirates are among the main destinations for Brazil's chicken exports.
Brazil's Agriculture Minister Carlos Favaro said on Friday China had banned poultry imports from the country for 60 days. Under agreements with Japan, UAE and Saudi Arabia, he said a trade ban would only restrict shipments from the affected state and, eventually, just the municipality in question.
The outbreak occurred in the city of Montenegro in Brazil's southernmost state of Rio Grande do Sul, the farm ministry said. The state accounts for 15% of Brazilian poultry production and exports, national pork and poultry group ABPA said in July 2024.
BRF has five processing plants operating in the state. JBS has also invested in local chicken processing plants under its Seara brand.
Veterinary officials have begun isolating the area of the outbreak in Montenegro and culling the remaining birds, in line with protocol, the state agricultural secretariat said.
"A complementary investigation will be carried out within an initial radius of 10 km (6 miles) from the area where the outbreak occurred, and into possible links with other properties," the secretariat said.
Favaro, the farm minister, said Brazil was working to contain the outbreak and negotiate a loosening of trade restrictions faster than the two months stipulated in protocols.
"If we manage to eliminate the outbreak, we think it's possible to re-establish a normal trade flow before the 60 days are up, including with China" Favaro said in an interview aired on CNN Brasil.
Chicken products shipped by Thursday will not be affected by trade restrictions, he added.
The ministry said in a statement that it was officially notifying the World Organization for Animal Health.
"All necessary measures to control the situation were quickly adopted, and the situation is under control and being monitored by government agencies," industry group ABPA said in a statement.
JBS referred questions about the outbreak to ABPA.
BRF CEO Miguel Gularte told analysts on an earnings call that he was confident Brazilian health protocols were robust and the situation would be quickly overcome.
Bird flu has swept through the U.S. poultry industry since 2022, killing around 170 million chickens, turkeys and other birds, severely affecting production of meat and eggs.
Bird flu has also infected nearly 70 people in the U.S., with one death, since 2024. Most of those infections have been among farmworkers exposed to infected poultry or cows.
The further spread of the disease raises the risk that bird flu could become more transmissible to humans.
Brazil, which exported more than 5 million metric tons of chicken products last year, first confirmed outbreaks of the highly pathogenic avian flu among wild birds in May 2023 in at least seven states.
The disease is not transmitted through the consumption of poultry meat or eggs, the Agriculture Ministry said in a statement.
"The Brazilian and world population can rest assured about the safety of inspected products, and there are no restrictions on their consumption," the ministry said.
