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Published on 04/11/2016
Published on 11/19/2015
Brazil Food Giant BRF Loses US$ 1.5 Billion in Stock Market, Following New Police Operation
03/06/2018 - 11h12
FROM SÃO PAULO
Phase three of Operation Weak Meat, which was launched by the Federal Police on Monday (the 5th), is targeting the actions of food giant BRF.
Phase three of the operation, which is called "Trapaça" (or "Cheater") carried out 53 search and seizure warrants, 27 subpoenas and 11 pre-trial detention warrants, one of which targeted former CEO Pedro Faria.
BRF shares fell 19.75%, leading to a R$ 5 billion (US$ 1.5 billion) loss in terms of market value.
The investigation into BRF activities consists of three main fronts: fraudulent lab samples in the state of Goiás, contaminated farms in Paraná and the use of banned animal food products in Santa Catarina.
The most serious of the charges suggests that executives tried to stifle accusations of fraudulent lab samples.
The Ministry of Agriculture suspended all exports connected to the three sites that are under investigation.
However, there were no reports of ships that were denied departure or blockades prohibiting entry of Brazilian products.
Agriculture Minister Blairo Maggi said that public health has not been put in harm's way and suggested making sure that meat was cooked until it was done in order to eliminate salmonella: the bacteria that was found in some of the company's lab samples.
In a statement, BRF said that it was prepared to provide society with all necessary clarifications.
Translated by THOMAS MATHEWSON
|BRF shares fell 19.75%, leading to a R$ 5 billion loss in terms of market value|