JBS Halts Meat Supply To Carrefour Stores In Brazil Amid Trade Tensions
Date
11/24/2024 7:00:21 PM
(MENAFN- The Rio Times) The Brazilian meat giant JBS, owner of Friboi, has decided to stop supplying meat to Carrefour stores in Brazil. This action is a direct response to the French supermarket chain's boycott of animal proteins from the Mercosur region.
The move aligns with calls from industry representatives, such as the Parliamentary Agricultural Front (FPA), who advocated for halting meat supplies as a countermeasure. This strategy will also affect brands associated with Carrefour , such as Atacadão.
The Carrefour Brazil Group stated in a note on Saturday night, the 23rd, that there is no meat shortage in its stores in Brazil. Carrefour's boycott follows pressure from French farmers opposing the trade agreement between the European Union and Mercosur.
The deal would establish a free-trade area encompassing approximately 800 million people. In 2023, the EU's exports to the four Mercosur countries amounted to €55.7 billion, while Mercosur's exports to the EU totaled €53.7 billion
Carrefour France clarified that their decision does not question the quality of Mercosur products but responds to demands from the French agricultural sector amid a crisis.
The boycott applies solely to French outlets and does not impact Carrefour's operations in Brazil or other countries. In regions where Carrefour operates franchises, including Brazil and Argentina, business continues as usual without any changes.
Background
On Friday, November 22, 2024, a major shift unfolded in Brazil's meat industry as key suppliers suspended their deliveries to Carrefour and its subsidiaries.
By Saturday, the backlash against Carrefour gained further momentum. In São Paulo, the Federation of Hotels, Restaurants, Bars, and Similar Establishments (FHORESP), representing over 500,000 businesses, called for a boycott of Carrefour stores. With Carrefour operating over 500,000 outlets across Brazil, the stakes are high.
The retaliation against Carrefour's policy could have serious financial consequences . Brazil is a key market for the retailer, contributing 17% of its global revenues and about 50% of its net profits. Analysts estimate that even a modest loss of 2–5% of Brazilian customers could result in revenue losses ranging from $315 million to $788 million.
JBS Halts Meat Supply to Carrefour Stores in Brazil Amid Trade Tensions
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