China slaps ban on Brazilian meat exports over processing 'scandal'


Temer ended his address by stating that of the 853,000 shipments of meat exported from Brazil past year, only 184 were considered "noncompliant" by importers - and these referred to problems regarding the labels or certificates and never the product's quality.

Common shares of BRF and JBS fell as much as 10 percent early on Monday after posting heavy losses on Friday.

Brazilian President, Michel Temer, created a task force in the Ministry of Agriculture, Livestock and Supply which has already put the 21 slaughterhouses involved in the Federal Police's Carne Fraca operation under a "special inspection regime". But with the latest meat scandal, Brazil's meat profits may be in danger.

France and other European countries are wary about opening up the EU meat market to countries in the South American Mercosur bloc, which also includes major exporters Brazil and Argentina.

The Brazilian police operation codenamed "Weak Flesh" was likely to deal a heavy blow to one of the few sectors of Latin America's largest economy that has thrived during a two-year recession.

Brazil is the world's biggest beef and poultry-exporting nation and the row is especially unwelcome when the country is struggling to exit its worst recession in history.

According to police reports, the meat companies could also chose the inspectors they wanted to visit their plants.

In a related development, the Ministry of Agriculture, represented by the General Authority for Veterinary Services, made a decision to review all processed meat and poultry shipments imported from Brazil to ensure that health and safety measures have been properly applied.

Brazil is still reeling from massive graft scandals involving state-controlled oil company Petrobras (PETR4.SA) and construction and engineering firm Odebrecht.

The claims appear to relate to discovery of frozen meat being used by a small value-adding company where use-by dates on product had expired. The company says it meets worldwide standards and supports punishing those who do not adhere to regulations.

Mr Temer set up the meeting with ambassadors following inquiries from the European Union and China over the scandal.