A group representing Brazil's meat processors has lowered forecasts for the nation's chicken and pork production and sales as the companies are still reeling from an ongoing investigation into claims that they bribed food inspectors to evade safety checks, Reuters reports.
The group, ABPA, cut its forecasted growth of chicken production from 3-5 percent to 1 percent, and it also cut exports to the same figure. The country’s expected approvals to export pork into South korea and Mexico have also been delayed. The group said that the “Operation Weak Flesh” investigation had damaged Brazil’s credibility. The scandal caused many countries to temporarily man Brazilian beef exports, and the United States later announced a ban on Brazilian beef due to a high amount of rejected shipments.
ABPA said Brazil would remain the world's largest chicken exporter even after the food scandal, which led to stricter sanitary controls in the country and at export destinations.
Source: Reuters via Nasdaq