Overreaction on Newcastle disease

The Newcastle disease confirmed in Rio Grande do Sul (RS) state is a new problem to the Brazilian poultry sector, which is already affected this year by the bird flu spreading in Europe and Asia. It is important to consider, however, that the Newcastle focus confirmed in a small farm of RS is an isolated situation. Scientific analyses should conclude that the event is irrelevant. Even so, many nations suspended imports from that state. Chicken prices received by farmers of São Paulo state moved down 17 percent since the beginning of the month, when the Newcastle was confirmed.

In the cattle market, prices reach a valuation of 4 percent in the accumulated of the month, moving around 23.40 dollars per arroba (15 kilos) in São Paulo, supported by the lower supply.

The living hog has been trading at 0.50 dollar per kilo in São Paulo state, with signs of reaction due to the lower supply and the expectation that Russia should retake pork imports from Brazil.

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