Carrefour’s Suspension of Mercosur Beef Purchases Sparks Boycotts and Tensions with Brazilian Agribusiness

Carrefour’s decision to stop buying beef from Mercosur to please French farmers is just the tip of the iceberg of a long-standing dissatisfaction with the free trade agreement between the bloc and the European Union (EU).

What happened

Carrefour in France decided to block the purchase of meat from Mercosur. The retailer’s CEO announced the decision in a statement addressed to the president of FNSEA (National Federation of Farmers’ Unions of France). The text highlights “the discouragement and anger of farmers regarding the proposed free trade agreement between the European Union and Mercosur.”

The protest followed waves of demonstrations by French farmers, who opposed the deal in an attempt to block the free trade agreement between the two blocs, signed in 2019. With the situation normalizing over the past few years and the good relationship between Presidents Lula and Emmanuel Macron, there was an expectation that the proposal would turn effective at the G20 summit held in Brazil last week.

The protests are led by those fearing “unfair competition.” These groups oppose the import of agricultural products without taxes. In addition to beef, they call for poultry and sugar embargoes. Macron is trying to reinforce his commitment to French agriculture in response to the protests. 

The current expectation is to sign the agreement on December 6. This estimate was revealed on Monday morning (25) by the Minister of Agriculture, Carlos Fávaro, in an interview with GloboNews. According to him, there is mutual interest in the alliance. “There is a good perspective for this agreement to be formalized on December 6 at the Mercosur Summit,” he stated.

Farmers cite sanitary concerns with Mercosur products. The flag was raised in the protests, and Carrefour’s decision was rejected by Fávaro, who points out that France has been consuming Brazilian meat products for over 40 years. “Brazil has one of the best food safety systems in the world,” he said, contesting the continuation of sales of the products in Carrefour stores in Brazil.

Here’s an interactive chart showing Brazil’s beef exports in containers to European ports between January 2021 and September 2024. The data is from DataLiner.

Beef Exports to Europe Ports | Jan 2021 – Sep 2024 | TEUs

Source: DataLiner (click here to request a demo)

Reaction

After the announcement of the suspension of purchases, Carrefour became the target of boycotts in Brazil. The French supermarket chain also operates the Atacadão and Sam’s Club brands. In “protest” of the French decision, Fhoresp (Federation of Hotels, Bars, and Restaurants of the State of São Paulo) recommends that its members stop purchasing from the stores. The association represents about 500 businesses in these sectors.

“We call on everyone to stop buying from the Carrefour, Atacadão, and Sam’s Club chains, part of the Carrefour Group. We request engagement and adherence to this boycott campaign, showing the strength and unity of our sector in defense of the national economy and respect for our products,” Fhoresp published in a statement.

Meatpackers are joining the boycott and suspending sales to the chain. The supply stoppage began last Thursday (21) and demanded a retraction from Carrefour. According to the newspaper Folha de S.Paulo, JBS, Minerva Foods, and Masterboi have already adopted the sales suspension.

The French chain says it “deeply regrets” the situation. In a statement released Monday, the company expressed confidence in the Brazilian agribusiness sector and said it understands its importance to the economy and society. The text also highlights the company’s efforts to “resume meat supply in our stores as soon as possible.”

Source: UOL Economy

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