Brazil’s beef industry is coming to a standstill as a nine-day-old truckers’ strike hits deliveries and disrupts exports for one of the world’s biggest meat producers.

The strike began on 21 May in a dispute over inflated diesel prices, but despite concessions made by President Michel Temer shows no signs of ending. The impact is being felt across Brazil’s industrial landscape, particularly in perishable foods and exports.

Meat giants BRF and Marfrig Global Foods said last Thursday they were experiencing a shortage of raw materials such as animal feed, with both firms either having to halt or pare back production..

Now, the Brazilian Beef Exporters Association (ABIEC) said a total of 107 plants are ”paralysed”, with another two operating at less than 50% capacity. The industry body estimates 40,000 tons of beef have been prevented from being exported, starving suppliers of around US$170m in revenues. And that only represents preliminary data, with ABIEC noting that many losses have not yet been accounted for, but that they could add up to around $3bn.

ABIEC also said 3,750 loaded trucks are at a standstill on Brazil’s highways and have been stuck for more than seven days laden with perishable cargoes. Those goods are likely to become unusable by tomorrow, it said.

As a means to try and put an end to the strike, President Temer cut diesel prices at the weekend for a period of 60 days, set a minimum fare that truck drivers should be paid for carrying freight, and instructed toll operators not to charge for unloaded vehicles. 

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

But truckers have not been convinced. Food wastages are mounting, including millions of birds and pigs that have been put to death due to a shortage of animal feed, with the count expected to keep rising as the strike lingers on.