Abattoirs reduce slaughter and meat packers cut jobs
07/04/2008
The
Brazilian government is claiming that industrial production across the economy has gone up without a rise in unemployment, but with an increase in average wages. However, the country's meat packers say they are 40% idle.
There is a shortage of cattle because the price of livestock is high and Brazil has experienced a drop in beef exports. The new situation has led companies in this sector to cut jobs. In the state of Rio Grande do Sul alone 400 people were dismissed last week. Other companies are putting off payments to suppliers.
Peter Martt Jr, director of Frigorífico Torlim has commented that production at his company's Campina Verde unit in Mato Grosso has come to a halt and that the whole workforce has been dismissed. “The market is bad,” he said. “The embargo by the European Union (EU) has made beef retail prices fall. Negotiating is not worthwhile so we have reduced operations to minimise the damage.”.
According to Zilmar Moussalle, managing director of Rio Grande do Sul's Beef Industry Union (Sicadergs), average idleness is 50% in the state. Mr Moussalle said that 'stock replenishment' is very complicated at the moment. “Breeders are waiting for the market to recover. They will not let their cattle go easily,” he added.
There is a shortage of cattle because the price of livestock is high and Brazil has experienced a drop in beef exports. The new situation has led companies in this sector to cut jobs. In the state of Rio Grande do Sul alone 400 people were dismissed last week. Other companies are putting off payments to suppliers.
Peter Martt Jr, director of Frigorífico Torlim has commented that production at his company's Campina Verde unit in Mato Grosso has come to a halt and that the whole workforce has been dismissed. “The market is bad,” he said. “The embargo by the European Union (EU) has made beef retail prices fall. Negotiating is not worthwhile so we have reduced operations to minimise the damage.”.
According to Zilmar Moussalle, managing director of Rio Grande do Sul's Beef Industry Union (Sicadergs), average idleness is 50% in the state. Mr Moussalle said that 'stock replenishment' is very complicated at the moment. “Breeders are waiting for the market to recover. They will not let their cattle go easily,” he added.
Superintendent of investor relations at Minerva, Ronald Aitken, said his company was operating at 80% of its capacity because of difficulties in buying cattle and securing a good price for meat.
The EU banned all beef imports from Brazil on January 31 after attempts failed to guarantee that meat came only from from a list of farms that were confirmed to be free of foot-and-mouth disease.
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