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March 10, 2006, 9:48PM
Bird Flu Impacts Brazil Chicken Industry
? 2006 The Associated Press
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--> SAO PAULO, Brazil ? Brazil's chicken industry, the world's largest, is cutting down production and laying off workers as worldwide consumption drops on fears of a bird flu epidemic, local media and analysts said this week.
While the deadly H5N1 strain of bird flu hasn't been found in Brazil, the country's huge chicken industry already is feeling ramifications from the disease.
In less than a week, three chicken meat processors have announced they were either going to temporarily cease operations or cancel investments in production.
Seara Alimentos said Thursday that it would lay off more than 220 workers in its Santa Catarina unit, according to local press reports.
Aurora Alimentos said Monday it would postpone investments of 100 million Brazilian reals (US$46.2 million; euro38.7 million) in chicken production this year because of bird flu fears in Aurora's main markets _ Europe, the Middle East and South Africa.
Last week, one of Brazil's largest chicken exporters, Avipal, said it will suspend operations for the month of April to lower chicken stocks. The company said it made the decision because of a drop in worldwide consumption due to the spread of bird flu in Asia, North Africa and Europe.
Brazil is the world's largest chicken producer and exporter, selling nearly 3 million metric tons (3.3 million tons) of chicken to world markets in 2005.
But the country's chicken exports fell in February to 190,300 metric tons (209,770 tons), compared to 206,600 metric tons (227,740 tons) in January.
"Buying chicken from us now is seen as risky business by the Europeans because you can buy it, and just as you get it ready to market, the prices fall with consumption," said Carlos Sant'Anna, an export director at trading firm, Comexport, in Sao Paulo. "Nobody wants to assume that risk right now."
Worldwide, the deadly H5N1 strain of bird flu has affected birds in more than 30 countries and caused economic losses of nearly US$10 billion (euro8.4 billion), according to the World Health Organization.
More than 90 people have died from the disease, which is believed to be spread to humans when people handle or come into close contact with diseased poultry.
Bird Flu Impacts Brazil Chicken Industry
? 2006 The Associated Press
<!-- commented out ad <iframe width="1" height="1" marginwidth="0" marginheight="0" frameborder=0 scrolling=no></iframe> <script></script>
--> SAO PAULO, Brazil ? Brazil's chicken industry, the world's largest, is cutting down production and laying off workers as worldwide consumption drops on fears of a bird flu epidemic, local media and analysts said this week.
While the deadly H5N1 strain of bird flu hasn't been found in Brazil, the country's huge chicken industry already is feeling ramifications from the disease.
In less than a week, three chicken meat processors have announced they were either going to temporarily cease operations or cancel investments in production.
Seara Alimentos said Thursday that it would lay off more than 220 workers in its Santa Catarina unit, according to local press reports.
Aurora Alimentos said Monday it would postpone investments of 100 million Brazilian reals (US$46.2 million; euro38.7 million) in chicken production this year because of bird flu fears in Aurora's main markets _ Europe, the Middle East and South Africa.
Last week, one of Brazil's largest chicken exporters, Avipal, said it will suspend operations for the month of April to lower chicken stocks. The company said it made the decision because of a drop in worldwide consumption due to the spread of bird flu in Asia, North Africa and Europe.
Brazil is the world's largest chicken producer and exporter, selling nearly 3 million metric tons (3.3 million tons) of chicken to world markets in 2005.
But the country's chicken exports fell in February to 190,300 metric tons (209,770 tons), compared to 206,600 metric tons (227,740 tons) in January.
"Buying chicken from us now is seen as risky business by the Europeans because you can buy it, and just as you get it ready to market, the prices fall with consumption," said Carlos Sant'Anna, an export director at trading firm, Comexport, in Sao Paulo. "Nobody wants to assume that risk right now."
Worldwide, the deadly H5N1 strain of bird flu has affected birds in more than 30 countries and caused economic losses of nearly US$10 billion (euro8.4 billion), according to the World Health Organization.
More than 90 people have died from the disease, which is believed to be spread to humans when people handle or come into close contact with diseased poultry.
