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BRF Expects China and Europe to Resume Chicken Imports Soon, Citing Hopeful Outlook
ByAinvest
Friday, Aug 15, 2025 9:55 am ET1min read
BRF SA, a Brazilian food processor, expects China and Europe to resume buying chicken products in a matter of days or weeks following a bird flu outbreak. The company also noted that lower grain prices, particularly corn, will reduce production costs and widen margins during the third and fourth quarters.
Brazilian food processor BRF SA (BRFS3.SA) has expressed optimism that China and Europe will resume buying chicken products within the next few days or weeks, following the recent bird flu outbreak that triggered trade bans [1][2][3]. The company reported strong second-quarter results, despite the disruptions caused by the outbreak. BRF's earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at 2.5 billion reais ($458 million), in line with analyst expectations [1].The bird flu outbreak in May led to a 15% drop in Brazilian poultry exports during the second quarter, with BRF's own poultry exports declining by 5% [1]. However, the company was able to redirect some products to the domestic market and find alternative destinations for certain cuts. Saudi Arabia has already resumed buying from Brazil, and Chile has agreed to resume imports after August 9 [4].
Lower grain prices, particularly corn, are expected to reduce production costs and widen margins for BRF during the third and fourth quarters [2]. This positive development comes as BRF has secured 11 new export authorizations, including key markets such as Argentina and Canada [1].
In conclusion, BRF SA's resilience in the face of the bird flu outbreak and the expected resumption of chicken imports from major markets bode well for the company's future performance. The company's ability to navigate trade disruptions and adapt to changing market conditions is a testament to its operational strength.
References:
[1] https://www.reuters.com/world/americas/brazils-brf-dodges-bird-flu-trade-disruptions-posts-q2-gains-2025-08-14/
[2] https://www.marketscreener.com/news/brazil-s-brf-expects-china-europe-to-resume-chicken-imports-ce7c51dedf80f626
[3] https://www.tradingview.com/news/reuters.com,2025:newsml_S0N3R800P:0-brazil-s-brf-expects-china-europe-to-resume-chicken-imports/
[4] https://finance.yahoo.com/news/saudi-arabia-chile-resume-poultry-002718602.html
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