By Garra - 03/06/2024 in Brazil and World

Slaughterhouses in flood-affected Brazilian state resume activities; livestock sector incurs BRL 150 million in losses

Following recent devastating floods in Rio Grande do Sul, most poultry and pork slaughterhouse units have now either partially or fully resumed their activities. The floods had initially caused shutdowns or reduced activity in ten units across the state. 

According to a joint survey by the Brazilian Animal Protein Association (ABPA), the Rio Grande do Sul Poultry Association (ASGAV), and the Union of Swine Products Industries of the State of Rio Grande do Sul (SIPS), only two plants remain paralyzed.

“With the gradual restoration of production, the risk to the supply of these proteins in the state is averted, despite occasional compromises due to logistical issues,” the entities stated.

However, the sector remains vigilant regarding the obstacles faced for input flow and production output, amidst transportation difficulties after dozens of road interruptions.

Losses

As the state’s livestock sector begins to recover, it has reported considerable financial losses amounting to approximately BRL 150 million (USD 28.7 million). These losses stem from both direct damage to the facilities and broader impacts on the industry’s supply chain, exacerbated by logistical challenges and interrupted transportation routes.

The total economic fallout from the floods in Rio Grande do Sul has surpassed BRL 6.3 billion (USD 1.2 billion), with the housing sector alone experiencing BRL 3.4 billion (USD 652 million) in damages, affecting over 61,400 homes.

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