Israeli Agriculture Ministry Blocks Import of Brazilian Chicken, Halting Baladi's Expansion Plans

The Israeli Ministry of Agriculture has reversed a previous approval and banned the import of chicken from Brazil, dealing a significant blow to Baladi Food Company. Baladi had invested 21 million shekels in establishing a chicken processing plant in Brazil and anticipated a substantial increase in revenue from imports. The decision was announced by Dr. Sergio Dolev, acting head of veterinary services, who removed Baladi's Brazilian plant from the list of approved exporters, stating that Brazil is not currently authorized to export chicken meat to Israel.

This reversal disrupts Baladi's plans, which had expected to start imports by mid-2025, projecting a 10-15% annual revenue increase from this source, potentially adding 300-400 million shekels to their turnover. The company had also aimed to be the exclusive importer from Brazil for 5 to 15 years, focusing on frozen, boneless chicken products like schnitzels and chicken thighs. The original approval was granted by former veterinary services head Tamir Goshen but has now been rescinded.

The ministry's decision follows pressure from local poultry producers and a petition filed by the Israeli Poultry Breeders Association against both the ministry and Baladi. Although the Supreme Court gave the Chief Rabbinate a 120-day deadline to resolve kosher certification issues for Brazilian imports, the agriculture ministry's ban effectively halts imports until further notice. Baladi has expressed surprise and intends to pursue legal action, claiming the decision violates procedural fairness and contradicts prior rulings.

Brazil is the world's largest chicken exporter, accounting for 38% of global exports, while Israel is among the largest importers per capita. The ministry emphasized that the ban is based on professional considerations regarding production oversight and animal welfare. Baladi's stock has dropped 22% in three months, partly due to this setback and recent competition from Shufersal, Israel's largest food retailer, which plans to import meat directly from South America.

The Agriculture Ministry stated it remains committed to expanding import sources to complement local production but will not compromise on food safety or animal welfare. If Brazilian authorities seek to resume the approval process, Israeli veterinary experts are prepared to conduct thorough inspections.