Suspending meat exports would be a disaster for Brazil

Brazil, proud of its sanitary status, was hit with allegations of corruption in its meat production industry that threaten its global status.

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PicsFive, Bigstock.com
PicsFive, Bigstock.com

Brazil has always boasted of its health status and that it is the only major poultry producer who has never had avian flu. Brazil was sure of its position. But this past weekend, the blow came from other side, with the case of "Weak Mesh".

The police mega-operation

The Federal Police conducted a mega-operation on March 17th, in six states and the Federal District of Brazil, in which a plot involving inspectors of the Ministry of Agriculture and employees of some meat processors bribed to not to do meat inspections as required, was dismantled. There are already 35 people in prison and 33 people removed from their positions.

Exports in the spotlight

Problems with Brazilian exports of beef and chicken did not take to long to happen. Very quickly, several countries closed borders or place severe restrictions in place. In Latin America, Chile was the first country; in Chile, a third of beef imports comes from Brazil. But the ban was extended to chicken and pork. Brazil does not understand the decision made by the neighboring country.

Meanwhile, Argentina worries because Brazilian companies own Argentine companies, so they expect no "contagion," while they meet with the European Union officials to unblock trade agreements in Buenos Aires. In Uruguay, they boast the strictness of their rules and mechanisms.

On the other hand, China and the European Union announced that there would be restrictions on meat from Brazil, while South Korea suspended purchases of Brazilian chicken on March 20, only to roll back the ban the next day, although they will intensify inspections.

Suspicions are not enough

For the time being, there are three processing plants prohibited: BRF’s Mineiros plant and two belonging to Peccin Agro Industrial in Curitiba and Jaragua do Sul. But the Ministry of Agriculture has put 21 processing plants, which, for the time being, cannot export, but they can continue to produce for the domestic market under special inspection arrangements.

It is clear, as the Minister of Agriculture Blairo Maggi said to the Brazilian newspaper Folha de São Paulo, that “I cannot simply end our productive system for one suspicion," because none of these plants is in the list of the Federal Police for adulteration.

Negotiations to avoid disaster

There are countries, such as Russia, which have not yet issued any statement on the matter. However, while all this happens, the Brazilian Agriculture Ministry is negotiating with Chile, the European Union or China, to prevent the interruption of the flow of exports. They also want to avoid retaliating, as it could be with Chile in the case of fish and fruits that enter Brazil from that country.

They want to negotiate full steam to avoid losing markets that have been conquered through the years and with much effort. They know that reopening these markets will take a long time again. If export sales are suspended, it would cause a disaster.

Maggi urges caution and to avoid exports these days, until things settle down again.

BRF and JBS defend themselves

Both, BRF and JBS, released today two separate press releases on their websites. They clarify that:

  • Both companies export to more than 150 countries.
  • They export to countries with stringent regulations, such as Japan, the United States or the European Union and therefore, they are exposed and open to all kinds of audits.
  • They have international certifications such as BRC (Global Standard for Food Safety), IFS (International Food Standard) and ALO Free (Agricultural Labeling Ordinance), in the case of BRF, and BRC (British Retail Consortium), in the case of JBS.
  • They consider unfounded the allegations of adulteration, as in the case of using cardboard or rotten meat in meat products.
  • They support their units to be inspected and they are at the disposal of the pertinent authorities.
  • They have professionals who are constantly trained in quality control and quality assurance.
  • JBS argues that none of its units are involved in this case.
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