Fearing Boycott After Amazon Crisis, Meatpackers Prepare Campaigns

RIO DE JANEIRO, BRAZIL – In a move to head off a crisis that could affect Brazilian beef exports, Brazil’s main domestic meatpackers, JBS, Marfrig and Minerva, are preparing individual promotional campaigns against a potential boycott by countries and importers of Brazilian meat, as a reaction to the fires in the Amazon, according to O Estado de S.Paulo newspaper.

Sources stated that the Ministry of Agriculture has received informal inquiries from countries such as Saudi Arabia, Germany, and Egypt, questioning the risk of Brazilian meatpackers buying cattle coming from deforested or illegal areas.

The companies themselves may also have also been approached by their clients. The ministry failed to comment when requested.

The consultations have raised concerns among the main exporting companies, which have certifications, monitoring commitments and certified audits, but still fear that the Amazon crisis could lead to a boycott of protectionist countries and impact the relationship with international investors, who may stop financing projects.

Marfrig, for instance, raised US$500 million in debt securities linked to sustainability (green bond) almost two months ago. JBS and Minerva plan to go public abroad and an image crisis at this point could jeopardize their plans.

Announcement

Last week, the Brazilian Association of Meat Exporting Industries (ABIEC) contemplated paying a full-page advertisement in the Financial Times and The New York Times to come out to the public and explain that Brazilian meatpackers comply with the strictest quality controls and that there is no risk of buying raw materials from deforested and illegal areas.

Last Friday, however, the project was aborted, and the announcement canceled after ABIEC concluded that the discussion was broader, and was not just about meatpacking plants, but about agribusiness as a whole and the government itself.

“It is not a problem of cattle ranching. We are aligned with the Brazilian Agribusiness Association (ABAG) and we are part of the Brazil Climate, Forests and Agriculture Coalition, whose campaign is “Be Legal with the Amazon,” says Liege Nogueira, executive director of ABIEC.

International consulting firms which already work with individual meatpacking plants and trade bodies are being heard.

According to Liege, exporting meatpackers are within strict production practices and open to answering any questions. “There is concern about how investors might view these issues.”

Agribusiness leaders heard by the newspaper O Estado de S.Paulo stated that conversations have intensified in Brasília with the Ministry of Agriculture and that they seek government support in this crisis.

“Operation Weak Meat, which was aimed at the poultry and pork industries, affected beef for a while due to a pure lack of knowledge. We don’t want this to happen again,” said a source in the sector, who spoke anonymously.

Answer

Questioned, Marfrig made no comment. JBS stated, through a note, that it supports the Brazil Climate, Forests and Agriculture Coalition’s initiative and that it is not running an isolated campaign in relation to this issue. Minerva reported that there is no ongoing institutional campaign at this time.