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%.