Chicken price may fall in Brazil after embargo the European UnionThe expectation is that the chicken would be exported to Europe to be sold in the domestic market, increasing the supply and making the price fall.
The embargo of the European Union to the Brazilian chicken can make the product cheaper in Brazil, according to the Brazilian Association of Animal Protein (ABPA). The expectation is that the chicken would be exported to Europe to be sold in the domestic market, increasing the supply and making the price fall, especially in places where they are prohibited production units to sell to the block.
“We should have a negative impact on the internal market pursuant to an excess supply, at first. But it is important to say that this offer will not be too large because Brazil was already decreasing sales to Europe in a gradual process due to the criteria used by mistakenly block”, says the market vice president of ABPA, Ricardo Santin.
The European Union announced on Thursday (18) that will disqualify 20 exporting plants from the list of Brazilian companies allowed to sell poultry meat and other products to the countries that make up the economic bloc formed by 28 countries. altogether, nine business units will be affected, according ABPA. The official list has not yet been disclosed and, According to the Association, the report of the decision must be made public in 15 days.
In addition to increased supply in the domestic market, the decision, second Santin, should generate and layoffs affect workers. “There will be an adaptation of the companies that will not produce if they have market”, says.
Santin points out that, currently, the four plant workers, and 3 three BRF – owner of Sadia and Perdigão – and Aurora, They are of collective vacations. “Are 5 thousand workers who are not working”, says.
Understand the case
The EU decision came after the third stage of Operation Weak Meat, erupted in 2017, the Federal Police to investigate allegations of fraud committed by federal agricultural inspectors and entrepreneurs. The call Operation Trickery, erupted in 5 March, targeted the BRF. The group is investigated for defrauding results of laboratory tests related to contamination by Salmonella bacteria pullorum. in a statement, BRF denied health risk to the population.
No official confirmation, but according to Minister of Agriculture, Livestock and Supply, Maggi, BRF will be the most affected company, with the nine plants currently authorized to export to the suspended block.
Maggi says the EU decision is just business and that will trigger the World Trade Organization (OMC). The date for this to occur is not yet defined. The matter has been, Folder according to, led to President, Michel Temer, and studies for the panel request with the organization are underway.