Severe weather conditions in Brazil’s southernmost state of Rio Grande do Sul have caused significant disruptions in the meat industry, according to Reuters citing meat lobby ABPA. The inclement weather, including heavy rains and flooding, has resulted in livestock deaths, blocked roads, and forced meatpackers to suspend or reduce operations at 10 pork and poultry plants.
ABPA reported that these plants are facing challenges such as a shortage of animals for slaughtering and a lack of employees due to the extreme conditions. Entire towns are submerged, critical infrastructure is destroyed, and videos circulating on social media depict the aftermath, including dozens of dead hogs in areas like Roca Sales, located in the Taquari river Valley, one of the worst-hit regions.
Veterinarian Flauri Migliavacca, who verified the videos, stated that the animals drowned in their sheds or were swept away by strong currents. Large meatpackers have sought assistance to deliver feed to farmers in affected areas, which are only accessible via alternative dirt roads.
Migliavacca warned of potential hunger and lack of water for hogs in large finishing facilities or nurseries, with farms housing hundreds to thousands of sows facing dwindling feed supplies due to damaged infrastructure. Farmers are advised to ration feed to prolong its duration in silos and keep the animals alive.
ABPA highlighted the likelihood of a shortage of poultry and pork products in Rio Grande do Sul until production systems resume, a process that could take more than 30 days. However, the meat lobby did not comment immediately on the livestock deaths and feed shortages.
Notably, companies like JBS SA and BRF SA operate multiple plants in Rio Grande do Sul. According to Goldman Sachs, BRF, which heavily relies on chicken, pork, and processed food produced in Brazil, would be most affected among the companies under their coverage.
Rio Grande do Sul accounts for a significant portion of Brazil’s chicken and pork production, with 11% of chicken and 19.8% of pork supplies coming from the state, some of which are sold on export markets. Consequently, BRF shares fell about 3.2% on Monday, while JBS remained flat.
