Berliner Boersenzeitung - Brazil minister says supports meat supplier 'boycott' of Carrefour

Carlos Favaro told the GloboNews broadcaster he was "happy with the attitude of our suppliers," which since last week have been snubbing retailers in Brazil operated by the French supermarket group.

The supply disruption was triggered after Carrefour's CEO Alexandre Bompard last week told French unions his supermarket chain would "not sell any meat coming from Mercosur" in its French outlets.

The row is linked to France's opposition to finalizing a European Union trade deal with Mercosur amid protests from French farmers who fear the pact would open the door to unfair competition.

The Mercosur bloc includes Brazil, Argentina, Uruguay and Paraguay.

Favaro said: "If for the French, Carrefour doesn't want to buy Brazilian meat, then Carrefour won't be buying Brazilian meat to put on its shelves here in Brazil either."

Carrefour Brazil confirmed in a statement it was being affected by the suppliers' decision.

A source at major meat supplier JBS told AFP on condition of anonymity that, since last Friday, "the company took the decision to suspend beef supplies" to Carrefour-run outlets in Brazil.

Supplies "are completely suspended and will continue to be suspended" until the French boss of Carrefour goes back on his position, the source said.

The Carrefour CEO's announcement sparked indignation in Brazil, with the government and the powerful meat industry accusing France of trade "protectionism" and smearing the quality of the country's meat exports.

Brazilian media are calling the disrupted meat deliveries to Carrefour supermarkets a "boycott" and many Brazilians online have applauded it.

- Carrefour seeking 'solutions' -

Carrefour Brazil said in a statement on Monday: "Unfortunately, the decision to suspend the supply of meat impacts our customers."

While a spokesman for the company stressed that "there is no lack of meat in the shops," the latest Carrefour statement said it was seeking "solutions that will enable us to resume the supply of meat to our stores."

Carrefour Brazil noted that it served "millions of customers" in the country, and had a workforce of more than 130,000 employees.

The developments in Brazil come as French farmers continue protests to press Paris to block the Mercosur deal.

Next week, the Mercosur countries are to hold a summit in Uruguay, with discussions to include progress on the trade accord with the European Union, which has been negotiated since 1999.

French President Emmanuel Macron reiterated his strong opposition to the deal when he attended a G20 summit in Brazil last week.

The European Commission, however, is intent on swiftly concluding the accord, whose contours were agreed in 2019. Germany and Spain, too, have expressed impatience to see the deal done.

(L.Kaufmann--BBZ)