November 27, 2024

Brazil's meatpackers stop sales to Carrefour as latter decides not to offer Mercosur-produced meat in France

Meatpackers in Brazil are suspending sales to Carrefour in retaliation to the company's decision to stop offering meat produced in Mercosur nations to customers in its home country of France, Folha de S. Paulo reported.

Major meat producer Minerva Foods blocked sales to Carrefour, the newspaper said, without elaborating on how it got the information. Another producer, Masterboi, also cited by the newspaper, confirmed to Bloomberg that it stopped supplying the chain with various meat products as of November 22.

The meatpackers' retaliatory move appears to deprive Carrefour of meat to sell at its stores inside Brazil — which the company acknowledged in a statement on November 24 will affect customers there. The company said there were no shortages of meat at the moment.

JBS SA halted beef sales to Carrefour on November 21, according to a source with knowledge of the matter, who asked not to be identified discussing the move. Officials for both JBS and Minerva declined to comment.

Carrefour's global president, Alexandre Bompard, recently announced the suspension, saying in a post on X that the decision was a message to agricultural unions at home in France. He also said the meat produced in Mercosur member countries — which include Brazil and Argentina, both known for meat production — was not up to French standards.

Carrefour has more than 1,000 outlets in Brazil, which includes other brands like Atacadao and Sam's Club.

Representatives from across Brazil's production chain signed an open letter attesting to 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 it's in talks to find a solution as soon as possible.

- Bloomberg