Brazil poultry exports face restrictions after Newcastle disease outbreak

The confirmation of a Newcastle disease outbreak at a commercial turkey farm in Brazil's Santa Catarina state on Oct. 18 has started to trigger restrictions on Brazilian poultry product exports, with shipments to China suspended under a self-embargo mechanism and the Mexican market closed to Brazilian products.

Brazil suspended poultry meat exports to China following confirmation of the disease, as provided for under the sanitary agreement between the two countries, according to Ricardo Santin, president of the Brazilian Animal Protein Association.

According to Brazil's Ministry of Agriculture and Livestock (Mapa), the sanitary requirements agreed with the Chinese government do not allow shipments of poultry meat and poultry products from any region of Brazil following the confirmation of a Newcastle disease outbreak. The same rule applies to Malaysia.

In the case of China, Santin said the self-embargo mechanism initially applies to the entire country. Chinese authorities subsequently assess the sanitary situation and determine whether the restriction can be regionalized.

Separately, Mexico suspended imports of poultry products from Brazil following confirmation of the outbreak. The measure covers poultry meat, offal and other poultry products, as well as hatching eggs, chicks up to three days old and certain categories of live birds, according to Mexico's Secretariat of Agriculture and Rural Development.

However, the impact of the Mexican suspension on imports of Brazilian poultry meat and related products is expected to be limited, according to a Brazilian exporter.

Sales and shipments of boneless chicken breast, the main Brazilian poultry product exported to Mexico, had already declined amid uncertainty over the renewal of PACIC tariff benefits after Dec. 31, 2026, the exporter said.

Market participants were concerned about the potential impact of the Newcastle disease outbreak on Brazilian exports, a Brazil-based trader said. The issue has also become the main topic of discussion at the international food exhibition SIAL in Paris, which brings together participants from the Brazilian and global poultry markets, the trader said.

Important trading partners, such as Japan and South Korea, had not yet announced any potential restrictions, a second exporter said.

According to the second exporter, if measures are adopted, the sanitary requirements agreed by Mapa with those countries provide for restrictions on exports of poultry products produced only within a radius of the affected area, which should limit the impact on export volumes.

The exporter, however, did not rule out the possibility that speculation about potential restrictions could affect sales and export prices for boneless chicken legs in the coming days.

Platts, part of S&P Global Energy, assessed CFR North Asia chicken leg down $60/metric ton day over day at $2,300/mt Oct. 20 for November-December loading to Tokyo, reflecting tradable values heard within a similar range and lower-priced demand.

In addition to the immediate impacts on importing markets, a market analyst said the Newcastle disease case could delay the resumption of Brazilian poultry exports to EU countries, which, according to the analyst, market participants had expected in November.