Rapid and transparent handling by a number of agencies of a single outbreak of Newcastle disease at a poultry farm in early July has led to the near-total resumption of Brazilian chicken meat exports to China.
According to the Brazilian Association of Animal Protein, ABPA, the self-imposed period of trade suspension lasted just 26 days.
ABPA acknowledged interventions by the Ministry of Agriculture and Livestock led by minister Carlos Fávaro, and the Secretaries of Agricultural Defense and Commerce & International Relations in identifying and handling the outbreak. Furthermore, the Brazilian embassy and agricultural attaché are credited with clarifying the situation with the Chinese authorities.
As a result of the negotiations, exports to China can now start again from all Brazil’s states except Rio Grande do Sul.
One month ago, authorities in Brazil announced that the Chinese trade would be suspended as an outbreak of Newcastle disease was confirmed at a small commercial farm in the southern state. These were the first recorded cases of the disease in Brazil since 2006.
No further cases of Newcastle disease have been officially recorded in Brazil since early July. ABPA reports that discussions are on-going with trading partners to clear poultry from Rio Grande do Sul for export.
Importance for chicken meat trade for Brazil, China
According to the ABPA, China is the leading market for shipments of Brazilian chicken products, according to the ABPA.
For the year to the end of July, China was the destination for 337,200 metric tons (mt) of these exports, valued at almost US$746 million.
In spite of the trade suspension, ABPA reports total Brazilian chicken exports have not been significantly impacted. It says shipments originally destined for China were diverted to other markets.
Over recent years, the trend in China’s imports of chicken meat has been downwards as domestic production has picked up with growing demand.
From 756,000mt in 2023, import volume is expected to fall to 450,000mt this year, according to a recent assessment by the USDA Foreign Agricultural Service (FAS). Its forecast for 2025 is just 300,000mt.
For the first six months of 2023, 64% of chicken meat imported by China came from Brazil. Other leading suppliers into this market were the U.S. (17%), Thailand (7%), and Russia (6%).
China also exports substantial volumes of chicken meat. According to FAS forecasts, this could increase from 554,000mt in 2023, to 660,00mt this year, and 670,000mt in 2025. Main destinations for Chinese products are Japan and Hong Kong.
Expansion in Chinese chicken sector forecast
Annual Chinese domestic production of 14,790mt in 2024, and 14,930mt for the following 12 months are forecast by FAS.
This expansion is expected to be mainly in the commercial production of white broilers, while output of the more traditional yellow birds, which are generally sold as carcasses at markets, will remain steady. FAS explains that the white birds are generally perceived in China as being healthier, and more versatile — growing trends among consumers. Furthermore, as pork prices have climbed ever higher in China over recent months, a steady and much lower price has been maintained for chicken.
In its report, FAS covers chicken paws separately. It states that domestic production does not meet demand for this specialty, and that China imports substantial volumes — over 500,000mt in 2023 — of frozen paws from Brazil, the U.S., and Russia.
Over the first half of this year, increased paw shipments from Brazil and Russia have partially filled a gap in supplies left by sanitary restrictions related to avian influenza on American poultry products.
