BRASILIA, Brazil — The stance taken by supermarket leader Carrefour in support of French farmers’ protests against the trade agreement between the European Union and the South American Mercosur bloc has led to significant backlash in Brazil. This response includes a halt in beef supply to Carrefour’s outlets throughout the country.

Carrefour’s CEO, Alexandre Bompard, announced via social media last week that the company would cease purchasing beef from all nations within the Mercosur bloc, which includes Argentina, Paraguay, and Uruguay. In his statements, Bompard expressed alignment with French farmers, asserting that beef from Mercosur is an unfair competitor because of its lower production costs attributed to fewer environmental and health regulations.

Bompard is not only halting purchases but is also encouraging other retail entities to adopt a similar approach. In reaction, Brazil’s Ministry of Agriculture branded Bompard’s actions as protectionist, asserting that the decision lacked technical reasoning.

The backlash also came from Brazil’s meatpacking industry, as key players were concerned about the implications of Carrefour’s move on their standing in other markets, despite France accounting for a minimal portion of Brazil’s beef exports. Major beef producers such as JBS and Marfrig announced last Friday that they would stop supplying Carrefour’s extensive network in Brazil, which includes the large food warehouse chain Atacadao. While there were no comments from these companies regarding the boycott, Brazil’s Minister of Agriculture, Carlos Fávaro, confirmed this development.

Fávaro supported the actions taken by the meatpackers, stating, “If Brazil’s beef isn’t good enough for Carrefour’s shelves in France, then it isn’t good enough for Carrefour’s shelves in Brazil either,” as reported to Folha de S.Paulo.

Carrefour’s Brazil division recognized the boycott in their official statement, acknowledging that there is currently no beef shortage in their stores. The company emphasized its respect and trust in the Brazilian agricultural sector, noting its durable partnerships with local farmers.

The statement also indicated that the company’s decision to suspend meat supplies would likely affect customers, particularly those who depend on Carrefour for sourcing quality and responsibly produced products. They asserted their commitment to ongoing discussions aimed at resuming meat supply to their stores swiftly, while respecting obligations to over 130,000 employees and countless customers across Brazil.

This conflict has roots in the EU-Mercosur trade agreement, intended to bolster agricultural imports into European nations from South America. French farmers are particularly concerned about how this deal might jeopardize their livelihoods. Although an initial agreement was established in 2019, subsequent negotiations have stalled due to pushback from various European governments.

Additionally, Brazil’s agricultural sector is apprehensive about potential EU regulations on deforestation, which could ban the sale of products linked to deforestation within the bloc of 27 countries. This regulation encompasses commodities such as soy and cattle, which are vital to Brazil’s economy. With nearly half of the nation’s cattle being raised in the Amazon region—where deforestation has led to 90% of cleared land since 1985 being converted to pasture, as reported by MapBiomas—the timeline for implementing such regulations remains uncertain.