Business a.m.

Brazil moving to self-monitoring of food, meat plants - minister

- business a.m.

BRAZIL IS MO VING TOWARD a self-monitoring system for food processors, Agricultur­e Minister Tereza Cristina Dias said at the weekend, including meatpacker­s still recovering from an inspection scandal that hurt trade with key markets.

Dias said in an interview that the government plans to send draft legislatio­n on self-monitoring to Congress in the first half of this year.

Self-monitoring, widely used in the United States and other developed countries in Europe, would be introduced gradually across various agricultur­al products and eventually be used for oversight

of meatpacker­s.

“Why can’t Brazil do self-monitoring when Europe and the United States use it?” she told Reuters.

Commercial partners banned certain Brazilian meat producers after a federal probe revealed alleged bribery and falsified inspection results in the country’s meat exporting industry, the world’s largest.

The scandal briefly threatened about $15 billion in exports from Brazil’s powerhouse protein industry as markets from China to Europe curtailed shipments of meat pending a review of the South American nation’s inspection protocols.

But Dias, a farm lobby congresswo­man who was picked to head the agricultur­e ministry by Brazil’s new right-wing President Jair Bolsonaro, adamantly defended the food industry’s ability to monitor itself.

“Our agricultur­e sector can provide guarantees. Just because of one episode we shouldn’t demonize Brazil’s food industry,” she said.

Dias argued that Brazilian multinatio­nal companies already use self-monitoring at subsidiari­es abroad.

Brazil is home to meatpackin­g giants JBS SA and BRF SA, both of whom were implicated in the ongoing food probes.

The federal investigat­ion, which started in 2017 and was expanded last year, is examining relations between food processors, Agricultur­e Ministry officials and laboratori­es with a mandate to certify the safety of meat sold domestical­ly and in foreign markets such as China, Japan, the Middle East and Europe.

JBS declined to comment on the introducti­on of a self-monitoring system. BRF and meat industry lobby ABPA did not return requests for comment.

Dias said she could not give specifics on what oversight would remain in the hands of the government since the matter was still under discussion with companies.

Dias said she has not begun talks with the European Union over lifting its ban on Brazilian chicken imports as the Bolsonaro government, which took office on Jan. 1, was still formulatin­g its policies.

The agricultur­e minister said she may travel to China in February or March, but no date for the trip has been set. Beijing has imposed anti-dumping measures on Brazilian chicken products, which Brasília is trying to get lifted.

Brazil’s farm sector is also concerned that Bolsonaro’s plan to move the country’s Israeli embassy to Jerusalem could hurt halal meat sales to Muslim countries, Dias said. Exports of Halal food, including beef, chicken, honey and cheese, rose to an estimated $5 billion last year.

“Of course, the agricultur­al sector that I represent is worried,” she said, when asked about possible repercussi­ons for trade with Arab countries angered by the foreign policy shift by Brazil, which has traditiona­lly backed a two-state solution to the Israeli-Palestinia­n conflict.

She said the policy is still being ironed out within the government and talks are being held with trading partners.

“We have to find a middle ground going forward because Brazil cannot lose markets. What we need is to open new markets,” Dias said.

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