After a long thriving period, Brazil’s livestock and farming industry has started slowing down. In fact, Covid-19 outbreak is hindering meat, produced by the South American giant. The most important groups in the country are thinking about, possibly in the future, the closure of slaughterhouses. Prudence demands for it (as much as the market feedback).
Covid-19 slows down meat
As reported by Beefpoint, from March 16th JBS have decided to have activities suspended in two slaughterhouses, based in Mato Grosso, as well as in another one located in Mato Grosso do Sul. The group, whose Couros division deals with leather tanning, might shut down, in a short while, two more plants and urge therefore all staff to go on leave. Likewise, from March 17th Minerva Foods have asked their workers, employed in four plants, to go on vacation. Conversely, Marfrig have not been planning, for the time being, any closure, though they might consider such decision should they face a possible downturn in sales. After all, the group has been already implementing a plan to control production.
The scenario
On the one hand, such decisions hang on requirements for caution, at work, owing to Coronavirus outbreak. On the other hand, meat groups have shut down slaughterhouses because of the market scenario as well. Alcides Torres, from Scot Consultoria agency, admits that demand for red meat is going through a declining phase; consequently, the price of living cattle goes down as well. Furthermore, the exporters’ association, ABIEC, also highlighted a logistics problem: it is difficult to find some available refrigerated containers. Shipping commodities abroad is quite hard, anyway.
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