Apology incoming! Carrefour caught in South American beef scandal

Alexandre Bompard, Carrefour SA's CEO, has agreed to issue a public apology to Brazil's government, hoping to wrap up the controversy created by the supermarket chain committing to not sell South American beef in France, according to Bloomberg.

French ambassador Emmanuel Lenain is reportedly trying to arrange a meeting with Carlos Favaro, the Brazilian Agriculture Minister, to issue this apology. The former is also expected to reemphasise the quality of Brazilian meat during this meeting.

Following this, Carrefour is also expected to issue a statement in both Brazil and France, with the justification that it has always only sold French meat in France.

This follows Carrefour’s support for French farmers' protests against a trade agreement between the European Union and the South American bloc Mercosur, which has sparked a strong reaction in Brazil, including a refusal to supply beef to Carrefour stores in Brazil.

Bompard announced on social media posts last week that the French company would stop buying beef from all Mercosur countries, which also include Argentina, Paraguay and Uruguay. Bompard wrote that he agrees with French producers' arguments that Mercosur beef is an unfair competitor due to lower production costs resulting from fewer environmental and sanitary requirements.

The executive encouraged other retailers to follow suit.

Brazil's Ministry of Agriculture called Bompard's move protectionist, saying it was made “without any technical criteria.”

The decision also angered Brazil's meatpackers. Though France makes up just a tiny percentage of Brazil’s beef exports, meatpackers are concerned that Carrefour’s decision would hurt its reputation in other markets.

Beef giants JBS and Marfrig halted supplies last Friday to