Brazilian Chicken: The Overture to Europe's Antibiotic War

The European Union's (EU) import regulations on Brazilian chicken are regarded as a symbolic case that succinctly illustrates Europe's economic situation. The EU has pursued policies that prioritize principles, such as aiding war-torn Ukraine and promoting eco-friendly livestock farming without antibiotics.

However, there is also an economic rationale to protect domestic farmers and pursue profits, and the EU faces a complex situation where it must also satisfy consumer demand for inexpensive products.

Just six to seven years ago, pork was the most consumed meat globally, but chicken has now taken the lead.

This pattern of trade conflict differs from conventional approaches seen in the international community. Europe is constructing more sophisticated non-tariff barriers that go beyond mere disease prevention.

This represents a new regulatory pattern that seeks to intervene in the exporting country's management system, indicating that trade conflicts have entered a new phase.

The European Union (EU) has declared its intention to fully intervene in Brazil's chicken production management. The EU plans to dispatch its inspectors to Brazil to directly examine the chicken production process.

This is a strong demand that goes beyond simple quality control, requiring a complete overhaul of Brazil's entire livestock management system, and could spark controversy over the infringement of Brazil's sovereignty.

In terms of global chicken production, the United States accounts for 20%, China for 15%, and Brazil for 14%, ranking third. However, unlike the US or China, Brazil exports most of its production, solidifying its status as the world's largest chicken exporter.

This means that Brazil exerts strong influence as a dominant supplier in the international chicken market.

Therefore, the EU's import regulations on Brazilian chicken are expected to have a significant impact on the global chicken supply chain and prices.

Antibiotic-resistant bacteria used in livestock can be transmitted to humans through animal feces and groundwater, posing a serious threat to human health. A Financial Times article on September 6 specifically warned of the risk of superbugs spreading from chicken farms to humans.

Concerns are growing that if humans become infected with these resistant bacteria, even colistin, considered a last-resort antibiotic, may be ineffective, making treatment impossible.

A study conducted in rural Punjab, Pakistan, found that all surveyed farms used antibiotics. Even more concerning, 60% of these used antibiotics without a prescription.

The study confirmed the use of colistin and fluoroquinolone antibiotics, which can be fatal to humans, highlighting the seriousness of antibiotic misuse.

Meat from animals treated with antibiotics is not necessarily dangerous. It is crucial to observe the 'withdrawal period,' a specific time before animals are sent for slaughter, allowing drug residues to break down. It is known that most drug components break down during a withdrawal period of about 1 to 2 weeks before slaughter.

Therefore, antibiotic-free certification does not mean no antibiotics were used at all, but rather that even if antibiotics were used, related standards such as the withdrawal period were strictly adhered to, ensuring safe production.

Chicken is one of the most important sources for fulfilling human protein demand, offering large quantities quickly and at an affordable price. Chicken demand and production are indeed increasing very rapidly.

With production costs 1/10 of beef and 1/5 of pork, and overwhelmingly efficient rearing, allowing chickens to be ready for market in 30-40 days compared to 30 months for cattle and 6 months for pigs, factory farming is unavoidable.

It surpassed beef consumption in the mid-1990s, and by around 2020, it even overtook pork, becoming the most consumed meat product worldwide.

This shift is the result of a complex interplay of chicken's economic viability, efficient productivity, and fewer religious and cultural restrictions.

This versatility is one of the main factors contributing to chicken's widespread global consumption.

The low religious and cultural barriers mean that chicken can be consumed like a free pass in various countries and cultures, significantly contributing to the expansion of the chicken market.

Preference for different chicken parts varies distinctly by country. In Western countries, demand for chicken breast is overwhelmingly high.

In contrast, China prefers chicken feet, almost sweeping them off the market, while in Asian countries, including Korea, chicken drumsticks are highly favored.

Brazil mainly produces frozen boneless chicken thigh meat, which is imported in large quantities into Korea. This is primarily supplied to institutional cafeterias and franchise businesses.

This is a result of Brazil's strategy to process and export boneless chicken to reduce logistics costs, aligning with the demand in the Korean market.

The EU granted MHP preferential treatment by exempting tariffs and quotas on agri-food products after the war in Ukraine.

Additionally, with substantial support of 300 million euros from the European Bank for Reconstruction and Development, MHP significantly increased its chicken exports to Europe.

Consequently, criticism has emerged within Europe that Ukrainian chicken is flooding the market, enriching a specific company.

Ukraine's MHP resorted to a loophole to circumvent the European Union's import quota regulations for chicken breast. By attaching a small portion of wing, bone, and skin to the chicken breast, it reclassified the product to avoid the chicken breast quota.

This method, known as the 'Batman cut,' is heavily criticized by European farmers as a 'trick' to bypass import restriction regulations.

MHP, now in its third year of the war, recorded its highest-ever sales last year, benefiting from the war. This is a result of the EU's tariff and quota exemptions after the war in Ukraine, as well as support from the European Bank for Reconstruction and Development.

Due to MHP's rapid growth, Ukraine has quickly risen to third place in the ranking of chicken importing countries within Europe, following Brazil and Thailand.

This was a political decision to protect their domestic farmers, demonstrating the deepening conflict over agricultural policy and trade among EU member states.

It has acquired a dairy processing company in Albania and a Spanish company, strengthening its foothold in the European market.

This suggests that MHP is pursuing an aggressive expansion strategy, aiming to dominate not just exports but also production and distribution networks within Europe.