Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Brazil's BRF maintains Gulf meat supply despite Abu Dhabi plant audit

Published 10/09/2019, 12:37 PM
© Reuters. A logo of Brazilian meatpacker BRF SA is seen in the headquarters in Curitiba
BRFS3
-

By Ana Mano

SAO PAULO (Reuters) - Brazilian food processor BRF SA (SA:BRFS3) confirmed on Wednesday that its plant in Abu Dhabi was being audited and that Saudi Arabia had restricted buying of some of its products, but it was still supplying Gulf markets.

BRF, which did not immediately name the auditing body involved, said the restrictions to sell to Saudi Arabia affect only a fraction of its business in the Gulf region.

The Abu Dhabi audit concerns the added value of the plant's processed meat sales, a company spokeswoman told Reuters, adding that it has tax incentives which are based on these.

BRF said some 90% of the halal meat it sells in the region is fresh and therefore not affected by the restrictions, which were first reported by Brazilian newspaper Valor Economico.

For meat to satisfy halal standards, an animal has to be slaughtered in accordance with certain rules.

The Abu Dhabi plant remains open during the audit process to serve other markets, BRF said, and supply to the Gulf region is guaranteed by its regional inventory.

© Reuters. A logo of Brazilian meatpacker BRF SA is seen in the headquarters in Curitiba

In the second quarter, BRF said it sold 298,000 tonnes of chicken in the halal market, of which 40,000 tonnes were processed. Of the 40,000 tonnes of processed products sold in the second quarter by BRF, about 25% was destined to Saudi Arabia, company filings show.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.