South Korean poultry companies saw their shares jump on Monday following reports of the first-ever outbreak of highly pathogenic avian influenza (HPAI) in Brazil, the world’s largest exporter of chicken.

Harim shares were trading 20.26 percent higher at 3,650 won as of 10:38 a.m. Harim Holdings shares also climbed 3.41 percent to 7,280 won, hitting a 52-week high of 7,980 won during intraday trading.

Other poultry-related stocks also surged, including Maniker (28.45 percent), Maniker F&G (15.77 percent), and Dongwoo Farm to Table (8.18 percent).

Brazil’s Ministry of Agriculture announced on Friday that a case of HPAI was confirmed at a commercial poultry facility in Montenegro, in Rio Grande do Sul. In response, Korea’s Ministry of Agriculture, Food and Rural Affairs imposed an import ban on Brazilian hatching eggs, table eggs, chicks, poultry meat, and poultry products.

With Brazil accounting for most of Korea’s frozen chicken imports, investors are betting that a potential import disruption could lead to a supply shortage and drive up domestic chicken prices, boosting sales and profits for local producers.

Harim shares closed at 3,800 won, and Harim Holding shares closed at 7,180 won.

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