It informed shareholders of the EU's decision to remove 12 of its Brazilian-based industrial facilities from the list that permits imports of animal origin products by the countries. The measure will enter into effect as of 16 May 2018, and its release by the Brazilian sanitary authorities is still pending.
In a statement, it said: "The decision appears to be motivated by protection of the local market, rather than health and quality issues, as recently certified by the Ministry of Agriculture, Livestock, and Supply (MAPA)."
The company warned of the impact on the entire Brazilian market. "It is worth noting that the European Commission's decision affects not only the Company but Brazilian trade in general, given the significant contribution of the Company to a positive balance of exports. Market data indicate that poultry is one of the main generators of jobs in Brazil, with approximately 3.5 million positions in the country. At BRF alone, 65,000 direct employees work in plants."
The measure only affects BRF’s facilities located in Brazil and ones that are licensed to export to the European Union. It is not expected to affect supply to other markets, or even the supply from other BRF facilities located abroad which export to the European market.
This comes following an investigation into BRF operations regarding allegedly covering up the presence of salmonella in products. This revelation led to some BRF sites being placed under a trade embargo by the EU.
Last month, BRF CEO José Aurélio Drummond Jr resigned, with chief financial officer Lorival Nogueira Luz Jr named as interim CEO.