Effects of Brazil Chicken Import Ban on South Korea
Creatrip Team
a year ago
South Korea has banned chicken imports from Brazil following an outbreak of highly pathogenic avian influenza (HPAI) in Brazil's southern region. While Brazil is a major chicken exporter, most major South Korean chicken franchises use domestic chicken, limiting the immediate impact on chicken prices. However, concerns arise about long-term supply chain challenges, especially for processed food companies that rely heavily on Brazilian chicken. If the ban extends, demand for domestic chicken may rise, leading to potential supply shortages and price increases.
Brazilian chicken is mainly used in processed foods sold in supermarkets and convenience stores, as well as for items like chicken dishes in izakayas (Japanese-style pubs). While current frozen stock might mitigate short-term effects, prolonged suspension could cause supply issues. The ban is initially set for 60 days, subject to review.
Overall, South Korea's domestic chicken self-sufficiency rate is high at 83.3%, and steps are being taken to increase this further. Despite potential challenges, short-term chicken market stability is expected, with possible fluctuations if imports remain prohibited.
