Brazilian meat companies see value plummet after scandal

Brazil's meat processing companies, JBS and BRF, among the largest in the world, have seen 5.4 billion reais (1.74 billion U.S. dollars) wiped off their value over the last month, owing to the ongoing adulterated meat scandal, a study revealed on Monday.

The data, released by the consultancy Economatica, showed that JBS, the largest global producer of animal protein, had lost 15.35 percent of its total value since the scandal broke on March 17. It slumped from being worth 32.6 billion reais (10.52 billion dollars) on March 16 to 27.6 billion reais (8.9 billion dollars) last week.

BRF suffered less, losing just 1.45 percent of its value, dropping to 31.5 billion reais (10.17 billion dollars) over the same period.

The two multinationals are accused of chemically altering meat to mask its smell and change its color as well as selling expired meat products.

Brazil's federal police have charged 63 people for participating in these activities.

All have been charged with passive corruption, use of forbidden or illicit substances, falsification of medical records, adulteration of food products or substances, embezzlement, malversation, and use of false documentation, among others.

The revelation of the case led to at least 25 countries imposing restrictions on imports and purchases of Brazilian meat, although most have since been lifted after the Brazilian government led a campaign to show it only concerns a small portion of its meat industry.

Brazil is the largest global exporter of beef and chicken and the fourth-largest exporter of pork. However, the government has calculated that the scandal could cost 10 percent of its external market, leading to a loss of around 1.5 billion dollars a year. Endi