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7 JBS plants shut down in Brazil

JBS S.A. will suspend cattle purchases and slaughter at seven of its facilities in Brazil’s Mato Grosso do Sul state, reported Meatingplace Sept. 18. The company made the announcement in response to a local court’s decision to freeze BRL730 million ($230.3 million) in assets belonging to the meat company and its controlling company J&F.

Earlier this year, former company CEO Wesley Batista admitted in plea bargain testimony that the company had used false invoices to cover up the money being spent to bribe politicians to provide tax incentives.

While “legal uncertainty,” inspired the halting of operations in seven unites, employees will continue to receive their salaries “until the company has a definition on the subject,” said the Meatingplace story.



The parent company, J&F, closed a leniency deal with prosecutors earlier this year, agreeing to pay $3.42 billion in fines which are expected to cover any possible claims for reimbursement related to irregularities committed.

JBS’ 15,000 direct and 60,000 indirect employeees in Mato Grosso do Sul fear layoffs, but the company has not at this time let on plans for anything like that.



The legislative chamber says local lawmakers will ask JBS representatives for a conciliation hearing in an effort to close an agreement that would secure jobs for the workers.

–staff report