Israeli Agriculture Ministry Halts Brazilian Chicken Imports, Impacting Prices and Market

Six months after approving food company Baladi to import chicken from Brazil, the Israeli Ministry of Agriculture reversed its decision and froze the import plan. Incoming Veterinary Services Director Dr. Sergio Dolev issued an official letter overturning his predecessor's approval, citing insufficient oversight of the Brazilian plant's production process. Baladi, controlled by Erez Dehbani, had counted on Brazilian imports to boost revenues by 10%-15% annually, approximately 400 million shekels.

The move also affects Israeli consumers, as the local poultry market, worth around 20 billion shekels and dominated by strong domestic growers, had anticipated price relief. Chicken prices in Israel have surged about 30% over the past five years, with per capita consumption reaching roughly 49 kilograms in 2024. The industry includes about 590 growers and sells over half a million tons of chicken annually.

The Israeli poultry market operates largely on an integration model where large slaughterhouses contract growers who raise chickens for about 40 days. Opening the market to cheaper imports was seen as a threat to this model, especially since local prices for chicken parts like thighs are about three times higher than global prices. Baladi had also faced regulatory hurdles with the Chief Rabbinate over kosher slaughter approvals abroad, with a court decision pending on November 18.

Baladi's plan involved importing mainly frozen, boneless, skinless chicken parts from a JBS group plant in Carapó, Brazil, which is federally approved for export to markets including Japan. However, concerns about animal welfare and health standards, which have led some European countries to ban Brazilian poultry imports, influenced the Israeli reversal. The State Comptroller's office is investigating the initial approval process following a complaint.

Baladi's stock has declined since its 2022 IPO, with a notable drop after reports in June about Shufersal importing meat directly from South America. The company invested 21 million shekels in the Brazilian facility. Meanwhile, the European Union plans to ban most Brazilian meat imports from September 2026 due to antimicrobial use concerns. The Israeli Agriculture Ministry stated it remains committed to expanding import sources but will not compromise on food safety or animal welfare.