Brazil Halts Meat Supply to Carrefour
Brazil Halts Meat Supply to Carrefour
São Paulo, 23 November 2024
Brazilian meat companies have moved to suspend supply to Carrefour following the retailer’s announcement that it will boycott meat from Mercosur countries. The decision, unveiled on 22 November, marks a sharp escalation in trade tensions between Brazil’s powerful meat sector and the French supermarket giant.
Carrefour’s global CEO Alexandre Bompard declared earlier in the week that the group would stop sourcing Mercosur meat in solidarity with French farmers, who have long expressed concerns about competition from South American imports. In response, Brazilian processors have begun cutting off deliveries to Carrefour outlets across the country.
Why it matters
Carrefour’s Brazilian division is one of its most profitable units, contributing around 17% of global revenues and more than half of net profits. Any disruption to meat supply risks denting consumer confidence and eroding market share in a region central to the retailer’s financial performance.
Market context
Industry analysts estimate that if even 2–5% of Brazilian customers turn away from Carrefour, the retailer could face revenue losses of $315–788 million. Already, up to 30% of Carrefour’s Brazilian outlets are reported to be experiencing shortages, particularly in beef. Poultry suppliers are also joining the boycott, while pork deliveries remain unaffected for now.
For Brazilian exporters, the dispute underscores the importance of balancing domestic and international trade flows. While Brazil remains one of the world’s leading suppliers of beef and poultry, political tensions and trade disputes with key buyers can disrupt long-standing commercial relationships.
Source: Richard Mann | The Rio Times
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