By Garra - 17/06/2024 in Chicken

Poultry sector in Brazilian State estimates BRL 247.22 million in losses from floods

Representatives of the poultry sector in Rio Grande do Sul updated the assessment of losses caused by the May floods in the Brazilian state, now estimating a loss of BRL 247.22 million. Previously, the preliminary estimate indicated BRL 182.9 million in damages, according to the Poultry Organization of Rio Grande do Sul, in partnership with the Rio Grande do Sul Poultry Association (Asgav) and the Union of Poultry Products Industry in the State (Sipargs).

According to the new analysis, disclosed by the entities in a joint statement, the structures of farms and agro-industries that suffered partial losses account for BRL 89.5 million in damages, while units with total loss account for BRL 15.88 million in damages.

“Information on partial and total losses is based on damages and losses from approximately 20 poultry houses, flooded feed factories, and food processing industries with machinery and equipment destruction. Four slaughterhouses have had their activities halted,” the entities said.

There are also damaged equipment and motors, issues with the electrical network, pipes, generators, and water tanks. Destroyed poultry house equipment, feeders, drinkers, and nests affected by the rains have increased the losses for rural producers.

The poultry and genetics segment reported a negative impact of BRL 23.15 million, with 497,448 broilers lost.

The associations also estimate a negative effect of BRL 116.49 million in the “other losses” category. This calculation includes liquidity issues affecting the supply chain, such as defaults by customers directly affected by the floods, retailers who lost their entire stock, and those who, without operational capacity, will not be able to pay their short-term debts.

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