A proposal by Brazil's next president to relocate its embassy in Israel, following US President Donald Trump's lead, may set off a diplomatic storm in the Muslim world, threatening a key market for the world's largest meat companies.

Brazil is by far the world's largest exporter of halal meat, which complies with Muslim dietary rules. President-elect Jair Bolsonaro's plans to move Brazil's embassy from Tel Aviv to Jerusalem, strengthening relations with Israel, has already upset Egypt and could soon stir trouble with other Islamic nations.

"The reaction will be given not only as an individual country but on behalf of the whole Muslim world," a Turkish diplomatic source told Reuters on condition of anonymity. "We are expecting Brazil to act with reason and not confront the Muslim world."

Brazil exports $16 billion annually to the Middle East and Turkey, with just 3 percent going to Israel, according to government statistics.