By The Rio Times | Created at 2024-11-23 10:55:42 | Updated at 2024-11-23 13:50:57
3 hours ago
A significant shift in the Brazilian meat industry has emerged as major companies begin to suspend their supply to Carrefour and its subsidiaries in Brazil. This move comes as a direct response to the French retailer’s recent announcement of a boycott on Mercosur meat products.
The decision to halt meat supply was initiated on Friday, November 22, 2024. It follows a statement made by Carrefour’s global CEO, Alexandre Bompard, on Wednesday. Bompard declared a boycott on meat from Mercosur countries, citing solidarity with French agricultural interests.
This retaliation could significantly impact Carrefour’s operations. The company’s Brazilian unit contributes 17% of global revenues and 51% of net profits. A loss of 2-5% of Brazilian customers could cost Carrefour $315-788 million in revenue.
Industry sources reveal that 30% of Carrefour’s Brazilian units are already experiencing supply disruptions. The impact is primarily affecting beef products, with a growing number of poultry suppliers joining the movement. No interruptions in pork deliveries have been reported so far.
Brazilian Meat Industry Halts Supply to Carrefour in Retaliation. (Photo Internet reproduction)Brazilian Meat Industry Halts Supply to Carrefour in Retaliation
When approached for comment, Carrefour denied any shortage in their stores. The company stated its commitment to Brazilian consumers and assured that it would not operate with empty shelves. However, Carrefour has not yet responded to specific questions about supply interruptions.
Second French Retailer Bans Mercosur Meat, Sparking Brazil’s Retaliation
The Brazilian Association of Beef Exporters (Abiec) is coordinating this action among its members. Sources indicate that major players like Minerva are participating in the supply halt. As of now, Abiec has not provided an official statement on the matter.
Other industry giants such as JBS, Frigol, Marfrig, and Minerva have either declined to comment or not responded to inquiries. This silence from key players adds to the uncertainty surrounding the situation.
