Brazil's chicken exports may fall 2% as bird flu embargoes curb trade, lobby group says

By Ana Mano and Roberto Samora

SAO PAULO, Aug 20 (Reuters) - Brazilian chicken exports are expected to fall as much as 2% to 5.2 million metric tons this year, meat lobby ABPA said on Wednesday, citing the impact of trade embargoes by large importers following a local outbreak of bird flu in May.

Brazil, the world's largest exporter, reported its first ever bird flu outbreak in a chicken breeding farm in the south.

Countries like China, Brazil's top trade partner, have not yet lifted trade embargoes even though the Brazilian government managed to control the outbreak within a month. Other trade partners have gradually eased restrictions over time.

ABPA had previously expected Brazilian chicken exports to rise as much as 1.9% this year.

The group, which represents firms like BRF BRFS3.SA and JBS Z98.F, said Brazil's egg exports were forecast to jump almost 117% to 40,000 tons in 2025, due largely to strong U.S. demand as egg supplies fell due to a bird flu outbreak there.

ABPA said it expected Brazilian chicken output to rise as much as 3% this year to 15.4 million tons, citing a potential increase in per capita consumption of up to 5.4% domestically.

For pork, Brazilian production this year is forecast to grow by as much as 2.2% to 5.42 million tons while exports could rise by 7.2% to 1.45 million tons, the group said.