The government announced on the 23rd that it has decided to allow the import of chicken produced in areas of Brazil where avian influenza (AI) has not occurred (localization), intensifying the confusion.
As concerns grew that the price of chicken would rise due to imports being halted after the outbreak of AI in Brazil, the largest source of chicken imports, the government released countermeasures. However, some expressed concerns about whether the safety of importing chicken from AI-affected countries has been validated.
As a result of the investigation, discussions on recognizing the localization of chicken between South Korea and Brazil have not been finalized. There are criticisms that the government hastily announced the policy, leading to misunderstandings that imports of Brazilian chicken would resume immediately.
The Ministry of Economy and Finance and the Ministry of Agriculture, Food and Rural Affairs stated in a press release following a price-related vice-ministerial meeting that they have decided to allow imports only for chicken produced in areas of Brazil where avian influenza (AI) has not occurred (localization). Based on this, reports have followed that the government will resume imports of Brazilian chicken.
However, the reality was different. Currently, the discussions on recognizing the localization of chicken between South Korea and Brazil have not concluded the 'import risk assessment,' the quarantine authority from the Ministry of Agriculture, Food and Rural Affairs explained. According to the quarantine authority, the current negotiations on recognizing localization with Brazil are at the 5th stage out of 8 stages in the import quarantine process. After completing the risk assessment, further discussions on finalizing localization standards will be necessary.
A representative from the Ministry of Agriculture, Food and Rural Affairs' quarantine authority stated, "There is still a procedure to negotiate with the counterpart after the import risk assessment," noting, "The negotiations have not yet concluded. It is difficult to predict when they will be finalized."
◇ What is the localization recognition negotiation?
The South Korean government and the Brazilian government have been conducting negotiations on 'localization recognition for chicken' since May 2023. Localization recognition refers to a system that allows the import of chicken produced in regions unaffected by AI, even if AI occurs in specific states.
Recently, the area in Brazil where AI occurred is the southernmost state of 'Rio Grande do Sul.' This state borders the Atlantic Ocean to the east and Uruguay and Argentina to the west. The capital is 'Porto Alegre.'
If our government recognizes localization for Brazilian chicken, it would only block the import of chicken raised in the state of Rio Grande do Sul, where AI occurred, while allowing imports of chicken produced in the remaining 26 states.
Two prerequisites must be met for such localization recognition to be established. First, it must be verifiable that the chicken slated for import was produced outside the AI-affected areas. Additionally, there must be a monitoring system to ensure that other regions are safe and that chickens are not mixed during the slaughtering and processing stages.
Our quarantine authority has been discussing localization recognition following a request from the Brazilian government in 2023. However, it is not the case that discussions are underway to resume imports immediately.
In this regard, a representative from the quarantine authority stated, "We are continuing to evaluate the recognition of localization for Brazilian chicken," adding, "During today’s price-related vice-ministerial meeting, we established the policy to expedite this, but it does not imply that imports will occur immediately."
Subsequently, the price authority also confirmed that the quarantine authority's explanation is correct. A representative from the Ministry of Economy and Finance explained, "In the press release, the expression 'decision to allow imports' was followed by 'Since major chicken importers are estimated to have 2 to 3 months of inventory left, we will promptly push ahead with the ongoing import risk assessment, negotiations with the counterpart, and administrative procedures to resume imports of Brazilian chicken as soon as possible.'"
◇ Announcement of 'resuming imports' during quarantine negotiations... Criticism of increasing market confusion
So can the localization recognition negotiations be concluded within the '2 to 3 months' that the government has proposed as a goal? A representative from the Ministry of Agriculture, Food and Rural Affairs drew the line, stating, "I cannot give a definitive answer."
The quarantine authority explained that concluding negotiations on quarantine procedures and monitoring methods between the two countries within 2 to 3 months is not an easy task.
The domestic political situation is also a variable. Depending on where the new government, which will be established after the June election, places its emphasis between 'price management' and 'support for farmers,' the policy direction could change.
Opposition from domestic poultry farmers is also expected. If chicken imports decrease, domestic chicken prices are likely to rise, increasing expected incomes. They might get caught up in the propaganda that suggests, 'We are hastily verifying safety and attempting to import chicken from countries where AI has occurred.'
In fact, the Poultry Producers Council, composed of the Korea Poultry Association, the Korean Broiler Association, the Korea Duck Association, and the Korean Native Chicken Association, issued a statement today, claiming, "This is the epitome of unilateral and biased 'shoddy administration' that pushes forward without analyzing the impact on the domestic chicken market or communicating with industry stakeholders," and demanded the immediate withdrawal of the push for 'import localization' of Brazilian poultry.
There are also criticisms that the government's decision-making on the import of agricultural and livestock products contradicts the quarantine process. Final decisions on agricultural and livestock product imports should be made only after all import risk assessment procedures are concluded and confirmed to be problem-free.
However, this time, the government has set a direction for 'resuming imports' first and stated that it will expedite the future procedures. Such an approach raises concerns that discussions on imports, including quarantine procedures, may be rushed according to government policy.
In response, a representative from the quarantine authority said, "We will expedite localization recognition negotiations considering domestic chicken demand, but the import risk assessment and quarantine procedures will be thoroughly established based on scientific standards."
There are also criticisms that announcing imports will resume soon, despite no confirmation of resuming imports, creates confusion in the market. A representative from the distribution industry stated, "If it is judged that the import of Brazilian chicken will soon resume as per the government announcement, the industry may not make efforts to secure inventory, leading to delays in the resumption of chicken imports and causing a surge in chicken prices, which will increase criticism of the government."