Brazil Could Lose Up To $1.5bn In Meat Exports
Brazilian meat packers may lose as much as $1.5 billion in exports this year after a corruption scandal that raised questions about meat quality.
In an interview withÂ Bloomberg, Brazilâ€™s agriculture minister Blairo Maggi said he would not be surprised if the country lost 5-10% of its market share in meat as a result of the scandal, although this estimate is still preliminary.
Last month, Brazilâ€™s Federal Police announced that 21 companies, including market leaders JBS and BRF, were involved in bribery of agricultural inspectors to release contaminated and adulterated meat on the market.
This was followed by a massive media campaign by the beef industry and the government's attempt to reassure the public.
Maggi believes that the first phase of the crisis is over, with most countries having resumed buying beef from Brazil after a brief suspension. However, he adds that much work still needs to be done to regain consumer confidence.
Brazilian meat exports are facing tougher inspections in importing countries; a move that Maggi says will eventually show that the safety procedures carried out by Brazilian authorities and companies are appropriate.
Brazil accounts for 20% of global beef exports and nearly 40% of chicken exports. Meat accounted for almost 10% of Brazil's export revenues last year, with BRF and JBS among the largest in the country.
Â© 2017Â European Supermarket MagazineÂ â€“ your source for the latest retail news. Article by Branislav Pekic. ClickÂ subscribeÂ to signÂ up toÂ ESM: The European Supermarket Magazine