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Southern Brazil flooding affects 10 poultry, pork plants, meat lobby says
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Southern Brazil flooding affects 10 poultry, pork plants, meat lobby says
May 6, 2024 10:35 AM

SAO PAULO, May 6 (Reuters) -

Inclement weather has forced meatpackers to fully or

partially halt operations at 10 pork or poultry plants in

Brazil's southernmost state of Rio Grande do Sul, meat lobby

ABPA said on Monday.

ABPA said these plants have been struggling to process raw

material and to transport employees to the factories, which are

facing "extreme issues" to operate as heavy rains and flooding

left entire towns under water, blocked roads and destroyed

critical infrastructure.

"There is also a fear that Rio Grande do Sul's population

would face a shortage of poultry and pork products until the

production systems resume - which could take more than 30 days,"

ABPA said.

Companies including JBS SA and BRF SA ( BRFS )

operate multiple plants in Rio Grande do Sul.

"Given its dependence on chicken, pork and processed

food produced in Brazil, BRF would be the company under our

coverage with the highest exposure to the state," Goldman Sachs ( GS )

said in a note to clients.

Rio Grande do Sul state accounts for 11% of Brazil's

total chicken production and for 19.8% of pork supplies, ABPA

data showed. Part of the volume is sold on export markets.

BRF shares fell about 4% in early afternoon trading

while JBS was down 0.4%.

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