Carrefour has apologised after its CEO Alexandre Bompard's criticism of South American meat last week angered Brazilian companies and caused suppliers to cut beef deliveries to the food retailer's Brazilian subsidiary.
The Brazilian unit, which operates Carrefour, Atacadão and Sam's Club stores, said beef deliveries had not been occurring as scheduled since last Thursday, causing temporary shortages of some cuts.
'The delivery schedule of beef products has resumed and the company expects the normalisation of resupply of such products during the coming days,' the unit of the French supermarket said in a securities filing.
Bompard said last week that the trade deal being discussed between the European Union and South America's Mercosur trade bloc presented the "risk of meat production spilling over into the French market (and) failing to meet its requirements and standards".
His remarks, made in a letter to leaders of France's farm lobbies and posted on social media, were blasted by Brazil's government and agribusiness groups as "protectionist".
Apology
On Tuesday (25 November), Carrefour headquarters said it regretted that the remarks had been 'perceived as a questioning of our partnership with Brazilian agriculture or as criticism of it'.
'We never set French agriculture against Brazilian agriculture, as our two beloved countries share a deep love for the land, its cultivation and quality food,' it added.
Abiec and ABPA, two lobby groups representing large processors including JBS, Marfrig and Minerva and BRF, welcomed the apology.
In a statement, Abiec said it hoped 'operations of the French retailer could be resumed,' in a sign that suppliers would imminently restart deliveries to Carrefour's stores in Brazil.
ABPA said its member companies considered Bompard's apology "an end to the case."
'A Fast Resolution'
'Based on the positive stock reaction, it seems that the market may be pricing a fast resolution,' Citi analysts said in a note to clients. They noted that although beef represents a small percentage of sales, meats in general help to drive customer traffic in stores.
Brazil's agriculture ministry also said it had received a letter from Bompard apologising for his remarks.
Carrefour said it sources meat sold in France almost exclusively from France and meat sold in Brazil exclusively from Brazil, adding it would continue to do so.
Bompard's remarks came amid protests by French farmers against a potential EU free trade agreement with the Mercosur bloc formed by Brazil, Argentina, Uruguay and Paraguay.
