JBS reduces meat production, but tanneries unaffected
27/03/2017
Federal police raided 21 meat factories run by different companies in different parts of Brazil on March 17. This followed the disclosure of bribes to meat inspection staff, raising suspicions that some of the meat leaving the factories concerned, which includes beef, pork, poultry and horse meat, may not have been fit for human consumption.
Exports of meat to markets, including China and the European Union have been affected and the Euopean commissioner responsible for health and food safety, Dr Vytenis Andriukaitis, has travelled to Brazil to discuss the matter.
On March 24, JBS issued a statement saying it had suspended production in all but three of its 36 Brazilian packing plants in the week following the police raids. Factories were to reopen on March 27, but functioning at around 65% of capacity. It added that it is making “every effort” to safeguard the jobs of its 125,000 employees throughout Brazil.
“These steps are being taken to adapt production until the situation involving the embargo by importers of Brazilian meat is clearer,” the statement said.
It confirmed that these meat production issues will no short-term or even medium-term effect on its leather division, JBS Couros. “This is because of the way JBS Couros is structured and its current stock levels,” the company said.
JBS Couros runs 16 tanneries in different parts of Brazil with all but five of them located close to the company’s own abattoirs, processing from raw hide to wet blue only. Stocks of wet blue have accumulated to sufficient levels to allow tannery production to continue as normal.
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