JBS & BRF under antitrust investigation
05 February 2020
Brazil-based meat producers JBS and BRF are under a preliminary investigation of the Administrative Council for Economic Defense (CADE), an antitrust body of the Brazilian government. The process was initiated after the CEOs of both companies announced their intentions to raise the chicken prices in order to offset the growing feedstuff costs due to increased corn prices. Despite the record corn output in Brazil in 2019, the prices for corn grew significantly due to strong domestic and foreign demand and were 30% up in December 2019, as compared to December 2018.
CADE’s preliminary investigation will determine whether both companies should undergo a more precise check for potentially anticompetitive behavior.
Back in late 2019, JBS reported on its plan to import nearly 200,000 tonnes of corn in response to increased domestic prices.