South African businesses and consumers are grappling with challenges due to the recent ban on poultry imports from the Brazilian state of Rio Grande do Sul. The decision was prompted by a single outbreak of Newcastle disease, a viral infection affecting birds, reported on July 9.
The incident marked Brazil’s first recorded outbreak of Newcastle disease since 2006. Despite the disease’s limited scope, South Africa’s Department of Agriculture, Land Reform and Rural Development has imposed sweeping trade restrictions. These measures include an immediate halt on imports of day-old chicks, hatching eggs, table eggs, and poultry meat from Rio Grande do Sul. Existing import permits have been voided as part of the response.
Furthermore, shipments already on their way to South Africa containing products packaged in Rio Grande do Sul from June 18 onward face rejection. These shipments will be either sent back to Brazil or destroyed at the importer’s expense. This development is a significant setback for businesses, potentially leading to a shortage of poultry products in September and October. As a result, consumers may see increased prices for items such as mechanically deboned meat, chicken livers, and turkey cuts.
Industry stakeholders have criticized the government’s handling of the situation, pointing to mismanagement and inconsistent trade policies as key factors exacerbating the crisis. The ban’s impact highlights the delicate balance required in managing international trade and disease control while supporting local markets.
South African authorities are closely monitoring the situation, while businesses seek alternative sources to mitigate the potential disruption in supply and price stability.
Following the extensive trade restrictions on poultry from Brazil’s Rio Grande do Sul, local Brazilian officials have confirmed that the area has been contained and no new cases of Newcastle disease have emerged. The World Organisation for Animal Health Terrestrial Animal Health Code states that Newcastle disease has a 21-day incubation period, suggesting that Brazil could have been declared free of the disease as of August 1.
Critics argue that the South African Department of Agriculture, Land Reform, and Rural Development’s measures are misaligned with the Import Permit and Health Certificate terms, which specify that restrictions should be limited to facilities within a 10km radius of the affected farm. In contrast, other countries like Canada, Israel, Japan, and Namibia have implemented a stricter 50km radius for quarantine.
Brazil, the leading global poultry exporter, generates 15% to 20% of its poultry and 50% of its turkey in Rio Grande do Sul. South Africa imports over 18,000 tonnes of chicken mechanically deboned meat (MDM) annually, vital for producing polony and sausages for the lower-income market. A significant 90% of this MDM is sourced from Brazil.
The current ban could reduce these imports by as much as 20%, adversely affecting households and causing significant disruptions in South Africa’s processed meat industry, which provides numerous jobs nationwide. The blanket ban on the entire province rather than applying regionalization clauses is considered a serious oversight, potentially leading to severe consumer impacts.
There are increasing calls for the South African government to adhere to the health certificate terms with Brazil and negotiate a new certificate that allows for regionalization, similar to agreements with the US. Additionally, implementing heat treatment protocols for MDM in local processing facilities is recommended to address avian influenza risks.
With thousands of jobs at risk and potential for more food price inflation, the urgency for resolution is evident. The local poultry industry, already reeling from a recent bird flu outbreak, faces a critical situation.
Roy Thomas, Logistics and Operations Director at Hume International, has emphasized the severity of the issue and the need for prompt action.