Brazilian meat packers suspend deliveries to Carrefour, Folha says

On November 25, 2024By Pranco

(Bloomberg) — Meat packers in Brazil are suspending sales to Carrefour in retaliation for the company’s decision to stop offering meat produced in Mercosur countries to customers in home France, Folha de S. Paulo reported.

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Major meat producer Minerva Foods blocked the sale to Carrefour, the newspaper said, without explaining how it obtained the information. Another producer, Masterboi, also cited by the newspaper, confirmed to Bloomberg that it has stopped supplying various meat products to the chain as of November 22.

The meat packers’ retaliation appears to be depriving Carrefour of the meat it can sell in stores in Brazil. The company acknowledged in a statement on Sunday that this will impact customers there. The company said there are currently no meat shortages.

JBS SA, the world’s largest meat producer, halted beef sales to Carrefour on Nov. 21, according to a person with knowledge of the matter who asked not to be identified discussing the move. Officials from both JBS and Minerva declined to comment.

Last week, Carrefour’s global president, Alexandre Bompard, announced the suspension, saying in a post on X that the decision was a message to agricultural unions in France. He also said that meat produced in Mercosur member states – including Brazil and Argentina, both known for their meat production – does not meet French standards.

Carrefour has more than 1,000 points of sale in Brazil, including other brands such as Atacadao and Sam’s Club.

Representatives from across the Brazilian production chain signed an open letter confirming the quality of meat produced in Mercosur. They said the decision demonstrates a “protectionist approach that contradicts the role of a global company with operations in diverse and interdependent markets.”

Carrefour said in a statement on Sunday that it is in discussions to find a solution as quickly as possible.