Tensions Rise Over Carrefour’s Decision to Ban Mercosur Meat in France
The fallout from Carrefour’s global CEO Alexandre Bompard’s decision to stop sourcing meat from Mercosur countries in France escalated sharply. Brazilian meat supplier JBS officially halted deliveries to Carrefour, causing immediate logistical and political challenges for the retailer.
Canceled Deliveries and Immediate Effects
Reports indicate that JBS trucks en route to Carrefour stores were recalled, disrupting the supply chain. Sources revealed that Carrefour’s Brazilian subsidiary was blindsided by the global announcement and is now scrambling to mitigate the economic and political damage.
Internally, Carrefour Brazil reported having up to four days of fresh meat inventory, including high-demand cuts like flank steak and sirloin. If no resolution is reached, shortages could begin as early as Monday, November 25. Despite the disruptions, alternative retailers and wholesalers are absorbing JBS’s redirected stock, minimizing financial losses for the supplier.
Government Involvement and Diplomatic Tensions
Brazil’s Minister of Agriculture, Carlos Fávaro, publicly criticized Bompard’s statement, calling it an affront to Brazil’s sovereignty and local producers. President Lula expressed anger over the controversy and directed Fávaro to address the matter. While rumors suggested government pressure influenced JBS’s decision, the company denies such claims.
Fávaro lauded JBS’s decision, stating, “If they can’t supply Carrefour France, they won’t supply Carrefour Brazil either.”
The political fallout has drawn attention to the strong ties between JBS’s controlling Batista family and the Brazilian government. Despite these pressures, Carrefour France has not issued an apology, which Brazilian authorities insist must come directly from Bompard.
Economic Implications for Carrefour
Carrefour Brazil is a critical part of the group’s global operations, contributing nearly half of its EBITDA. The crisis risks disrupting this profitability, especially as December approaches—a peak sales period for both Christmas poultry and barbecue meats for New Year’s celebrations.
With roughly 80% of Carrefour Brazil’s meat supply coming from JBS brands, alternatives are limited. Resorting to emergency distributors has proven challenging due to cost and availability.
Internal Struggles and Damage Control
Carrefour Brazil’s leadership has initiated talks with its French counterpart to address the crisis. Insiders criticize Bompard for making unilateral decisions that jeopardize the company’s largest market and financial stability.
“This was a personal and political move by Bompard,” a source close to Carrefour stated. “He didn’t protect the company and instead risked the Brazilian market, which funds their financial operations and pays dividends to the parent company.”
While Carrefour France clarified that the ban applies only to its French stores, the damage to the company’s image and supply chain in Brazil is evident.
Next Steps
The crisis has reached Carrefour’s board in France, which is now deliberating its response. A public apology to Brazil, particularly from Bompard, is reportedly under consideration but faces resistance due to the CEO’s relationship with French farmers and President Emmanuel Macron.
Without swift resolution, Carrefour risks not only a meat shortage in Brazil but also long-term reputational damage in one of its most critical markets.
