Brazil's JBS SA (JBSS3.SA), the world's biggest meatpacking company, announced on Thursday that it had suspended beef production at 33 of its 36 plants amid the corruption scandal that has caused some of the country's biggest export markets to ban Brazilian meats.
Agriculture Minister Blairo Maggi said a police investigation, which alleges that meat processors paid bribes for inspectors to turn a blind eye to unsanitary or irregular activity, was exaggerated and wrongly challenged the quality of one of the country's most important exports.
But it has battered demand for Brazilian meats since Friday nonetheless.
JBS and BRF SA (BRFS3.SA), the world's largest poultry exporter, are among dozens of firms targeted in the meatpacking industry investigation by Brazil's Federal Police. Both companies have denied any wrongdoing.
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