Brazil poultry exports face fresh threat after disease detected at MBRF supplier

SAo Paulo – The detection of a severe poultry disease announced on Oct 19 in top exporter Brazil occurred at a supplier of MBRF Global Foods, according to people familiar with the matter. A case of Newcastle disease, which attacks the respiratory, nervous and digestive systems of birds, was identified at a turkey producer that supplies livestock exclusively to MBRF, said the people who did not want to be identified as details are not public. The producer supplies MBRF’s Chapeco plant, which is a unit that produces poultry targeting export markets. The company declined to comment, saying: “As this is an industry-wide matter, we are redirecting inquiries on the subject to the Brazilian Animal Protein Association (ABPA).”The news risks hurting poultry sales for Brazil, as key importing countries have in the past restricted purchases after news of outbreaks. Still, the extent of impacts will depend on decisions from buyers, who may limit imports from the entire country or from the specific regions. If key buyers restrict purchases, meatpacking plants may react by redirecting shipments to other destinations.In a previous outbreak of Newcastle in 2024, Brazil had to halt shipments to China and the European Union. Brazil’s Agriculture Ministry confirmed on Oct 19 that the viral, highly contagious disease was identified at a commercial turkey unit in Nova Itaberaba, in the state of Santa Catarina. The facility was closed, with the movement of birds suspended. The move comes at a crucial time for Brazil, as the country was working to resume exports to the European Union after adjusting to new requirements on drugs used in livestock. Meatpacking shares fell on the news. JBS NV retreated 1% in New York, while MBRF fell 4.1% in Sao Paulo.Brazil’s chicken exporters association ABPA and local Santa Catarina groups ACAV and Sindicarne said in a note that there are no risks associated with consuming the product. “Brazil has a well-established animal health system, with protocols for surveillance, prevention and response to outbreaks of this nature, including containment and disease-control measures established under current regulations,” they said. The Santa Catarina state is Brazil’s second-largest supplier of chicken, accounting for roughly 23% of all exports in 2026 through September.In a note, Brazil’s Agriculture Ministry said it will maintain dialogue with international health authorities. As part of the containment measures, sanitary authorities will monitor approximately 133 properties in the municipality of Nova Itaberaba and in three neighbouring towns. BLOOMBERG