Brazil blasts Carrefour over vow to keep Mercosur meat off shelves

By Lisandra Paraguassu and Luana Maria Benedito

BRASILIA (Reuters) – Brazil’s government has blasted French retailer Carrefour (EPA:CARR) 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, Marfrig and Minerva, called the retailer’s plan “contradictory” as its local unit Carrefour Brasil 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.