JBS SA, the world’s largest meat packer, has suspended production at 10 plants in Brazil. The action comes as the company works to rebound from the fallout of an anticorruption investigation launched by the Federal Police in Brazil.
European Union has insisted Brazilian representatives attend an emergency meeting to explain themselves regarding a scandal involving rotten meat and the country’s two largest exporters, JBS and BRF. Brazil has already announced that the 22 plants (out of over 4.000) allegedly involved in the scam have been closed.
Brazil's President Michel Temer has sought to reassure foreign trade partners that the corruption scandal engulfing the country's meat industry does not mean its products are unsafe. Meeting ambassadors from Europe, the United States and China to share a barbeque, Temer said his government remained confident about the quality of Brazilian meat.
Brazilian police launched an investigation of fraud at state-run companies' pension funds on Monday, as a judge ordered dozens of senior financiers and executives away from their firms, including the chief executive of the world's biggest beef exporter.
JBS SA, the world's largest beef producer, denied a Saturday newspaper report that it had made illegal payments for President Dilma Rousseff's 2014 reelection campaign. O Globo newspaper, citing leaked testimony given to federal investigators by Monica Moura, the wife of Rousseff's campaign chief Joao Santana, earlier reported that JBS paid the Rousseff campaign's debt to Focal, a Sao Paulo-based visual communications firm.
Financial and political turmoil that have Brazil on the brink of a depression is also contributing to one of the best years ever for domestic farmers. Economic stress and a weak currency has facilitated export revenue for everything from soybeans to beef to coffee.
Brazil’s JBS, the world’s largest meat packer, has agreed to pay about $1.5 billion for Moy Park, the British unit of rival Mafrig Global Foods. JBS, which has undertaken a massive overseas expansion since 2007, will pay $1.19 billion in cash and will assume Moy Park’s debt totaling £200 million as part of the deal, Marfrig said in a statement.
Brazilian meats giant JBS SA plans to focus on Australia, U.S. pork operations and its processed foods division under a 2015 strategy focused on organic expansion rather than acquisitions, CEO Wesley Batista said on Thursday, and estimated that between 2.5 billion to 3 billion reais (806 million/967 million dollars) in capital investment will be needed this year to support the strategy.
Brazil's JBS, the world's biggest meat group, beefed up its growth in Australia with the 1.25bn dollars purchase of Primo Smallgoods Group. JBS said that through its JBS Australia business, it had paid Aus$1.45bn in cash for the supplier of the likes of ham and bacon to Oceania.
Brazilian beef processor JBS SA is reportedly planning to lease four slaughterhouses in Brazil, three of which may be in the cattle-rich state of Mato Grosso, according to Brazilian news outlets Wednesday citing anonymous sources.