December 14, 2007

 

Sadia delays new plants, pending further EU restrictions on Brazilian beef

 

 

An EU announcement that it may impose more restrictions on Brazilian beef has thrown a wrench into the works for Sadia's plans to launch new meatpacking plants.

 

A decision from the EU is expected next week.

 

The EU announced plans for further restrictions after an inspectors' report indicated problems with traceability and vaccination programmes from Brazil.

 

Sadia S.A. said it will delay for a month an announcement on the location of its new meatpacking plant, according to Bloomberg.

 

The EU might mandate all Brazilian meat producers to pass an inspection to qualify to export beef to member countries, Valor Economico reported.

 

Sadia CEO Gilberto Tomazoni told reporters the company, which has three plant sites in mind, will delay its decision until it determines which region would be least affected by the potential rule change.

 

EU has placed restrictions on three Brazilian states after the discovery of the highly contagious foot-and-mouth disease.