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China’s perfect storm a boon to Brazil’s meat producers: ABPA

Published : Wednesday, 5 February, 2020 at 12:00 AM  Count : 94

SAO PAULO, Feb 4: Brazil's meat industry association ABPA said a "perfect storm" of health and food security concerns in China promises to drive up demand for South American meat, giving Brazilian meatpacker shares a boost on Monday.
China reported a new outbreak of bird flu on Saturday while millions of chickens face the prospect of starvation amid a lockdown in Hubei province, near the epicenter of the coronavirus epidemic.
That comes as Chinese meat suppliers are still grappling with the lasting effects of African swine fever (ASF), which decimated a major portion of the country's pig population.
"ASF, coronavirus and bird flu influence consumer habits and may drive Chinese demand for Brazilian meat," Francisco Turra, president of ABPA, told Reuters in a telephone interview.
"Our representatives in China tell us that there are major concerns over food security."
Brazil stands to benefit as a safe source of meat, having never had a case of bird flu or African swine fever, he added.
The country has capacity to step in to cater to at least some of the additional Chinese demand for imported poultry, having processed some 6 billion birds last year, Turra said.
Shares in the world's largest chicken exporter, BRF SA (BRFS3.SA), rose 6per cent in So Paulo trading Monday before paring gains to 3.4per cent, while shares of rival JBS SA (JBSS3.SA) rose 3.7per cent before falling back to 2per cent.    -Reuters

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