Brazilian poultry group estimates losses of $35.5 million from flooding

The poultry industry in Brazil's Rio Grande do Sul state is facing losses of real 182.9 million ($35.5 million) due to recent flooding, the state's poultry association has said.

Preliminary data released by the Avian Organization of Rio Grande do Sul identified major losses in several areas of the industry, including the loss of 279,000 chickens, valued at real 2.8 million, as well as 150,000 laying hens with a value of real 3.6 million. The losses also included 644,000 broiler chicks and 722,500 fertile eggs, at a total cost of real 13.6 million. There has also been significant damage to chicken production and distribution facilities, at real 15.8 million.

The poultry group conducted a survey of members May 5-20, it said.

Lost sales and damage to vehicles, supplies and packaging contributed to the total loss of real 182.9 million estimated by the poultry group, it said.

The Taquari Valley, responsible for 20% of total chicken production inRio Grande do Sul, has been particularly affected, marking the third time in less than six months that the region has had to recover from a flood.

Important market participants have been impacted, with operations suspended and logistical challenges to overcome. TheRio Grande do Sul poultry association has submitted demands to state and federal governments, to make credit lines more flexible and to allocate funds to support the industry.