Blow to Baladi: Ministry of Agriculture reverses course and bans chicken imports from Brazil

A major blow to the food company Baladi, which had planned to import frozen chicken from Brazil. Globes has learned that Dr. Sergio Dolev, acting director of Veterinary Services, has reversed the decision of his predecessor, Tamir Goshen. The Ministry of Agriculture has notified Baladi of its decision to remove the company's Brazilian plant from the list of approved facilities for meat imports to Israel, stating that "Brazil will not be approved at this stage for the export of chicken meat to Israel."

This is a significant setback for the company, led by Erez Dahabani, which invested 21 million shekels in the plant and had been engaged in a long-standing legal battle against the Ministry of Agriculture and the Chief Rabbinate to secure import permits.

Baladi was reportedly caught off guard by the move and will be required to issue a notice to investors. During its 2024 IPO, the company projected that imports from Brazil would begin by mid-2025, estimating a 10%–15% annual boost to its revenues. With a projected turnover of 3 billion shekels, the company expected the plant to contribute 300–400 million shekels in revenue. Baladi had also anticipated becoming the exclusive importer from Brazil for a period of 5 to 15 years, focusing on frozen boneless chicken, such as schnitzels and thigh fillets.

The Ministry of Agriculture's decision effectively resets the entire process. It follows intense pressure from local producers, including a petition filed by the Poultry Breeders Association against the ministry and Baladi.

Last month, the Supreme Court gave the Chief Rabbinate a 120-day deadline to resolve kashrut issues to facilitate imports. However, the Ministry of Agriculture's new stance makes imports impossible without their explicit authorization.

Baladi had previously expressed optimism, noting in its first-quarter reports that it had petitioned the High Court of Justice (Bagatz) to compel the authorities to establish procedures for importing kosher chicken from abroad.

Brazil is the world's largest chicken exporter, accounting for 38% of global exports. Israel is one of the world's largest importers, with annual consumption reaching approximately 50 kg per capita. Industry sources note that chicken is the primary protein source in Israel due to limited grazing land, lack of fishing grounds, and the absence of pork in the local diet.

This marks the second blow to the company in two months. Previously, Globes revealed that Israel's largest food retailer, Shufersal, would begin importing meat directly from South America, threatening Baladi's shelf space and product variety.

Baladi's stock has fallen 22% over the last three months, and the company is currently trading at a market capitalization of 2.1 billion shekels.