Rio Grande do Sul chicken producers curb output amid EU ban threat

The poultry sector in Brazil's Rio Grande do Sul is preparing to slow production and processing in the coming weeks as it faces elevated costs, weakened domestic demand and the prospect of a European Union ban on Brazilian animal‑origin products. The EU has removed Brazil from its list of authorized exporters, citing deficiencies in antimicrobial use controls; the ban could take effect in September 2026, jeopardising roughly 10% of the state's chicken export volume. Producers aim to avoid excess inventories and protect margins while the trade continues under a temporary exemption until the ban date.

Domestic challenges compound the export risk: high consumer debt, rising online betting expenditures and persistent inflation limit households' ability to purchase meat, while high interest rates increase financing costs for farms. International factors such as higher oil prices raise freight and packaging costs, adding further pressure on producers' profitability.

Industry groups and the Ministry of Agriculture are seeking to provide additional information to the European Commission in hopes of reversing the exclusion, but the potential loss of the EU market remains a significant uncertainty for the region's poultry industry.