Brazil blasts Carrefour over vow to keep Mercosur meat off shelves
By Lisandra Paraguassu and Luana Maria Benedito
BRASILIA, Nov 21 (Reuters) -Brazil's government has blasted French retailer Carrefour CARR.PA after its CEO vowed to keep South American meat off its shelves in France in solidarity with farmers, calling the comments part of a wider push to undermine a pending trade deal.
Agriculture Minister Carlos Favaro called the pledge part of an "orchestrated action" by French companies to sabotage the trade pact between the European Union and South American trade bloc Mercosur, which officials aim to finalize this year.
In a social media post addressed to leaders of France's farm lobbies on Wednesday, Bompard said the EU-Mercosur deal presented the "risk of meat production spilling over into the French market failing to meet its requirements and standards."
"Carrefour wants to form a united front with the agricultural world and is today committing not to sell any meat from Mercosur," he added.
Carrefour representatives clarified to Reuters that the retailer does not currently source meat in France from Mercosur. The company did not answer questions about sourcing for its stores elsewhere in Europe.
Brazilian meat industry group Abiec, which represents beef suppliers including JBS JBSS3.SA, Marfrig MRFG3.SA and Minerva BEEF3.SA, called the retailer's plan "contradictory" as its local unit Carrefour Brasil CRFB3.SA operates 1,200 stores in the country selling mostly domestic beef.
"It seems to me that they are trying to find some pretext so that France does not sign ... the finalization of the Mercosur-European Union agreement," Favaro said.
In a separate statement, Brazil's Agriculture Ministry had said Brazil's rigorous controls made it the largest exporter of beef and poultry in the world, selling to 160 countries and meeting the strictest standards, including those of the EU.
Conrado Ferber, head of Uruguay's National Meat Institute, said Carrefour's stance was "regrettable" and "commercially incomprehensible" because it disregarded the basis of free trade that allows economies to grow.
In a statement to Reuters on Thursday, Carrefour clarified that the CEO's comments applied only to stores in France, and is not related to the quality of Mercosur meat but rather concerns from the French agricultural sector.
Carrefour said all other countries where the group is present, including Brazil and Argentina, can continue to purchase meat from Mercosur.
Reporting by Lisandra Paraguassu in Brasilia, Luana Maria Benedito in Sao Paulo and Lucinda Elliott in Montevideo; Writing by Ana Mano; Editing by Brad Haynes and Stephen Coates
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
