BRF global CEO to exit following increasing losses

Brazil-based meat exporter BRF global's CEO Pedro de Andrade Faria is set to relinquish his role towards the end of the year, in the wake of mounting losses and an investigation into a food scandal in the country.

In its latest quarterly results, the company noted that it sold 495,000t of food in the country and registered a loss of BRL167.3m ($53m).

The company attributed losses to prevailing market conditions and a rise in grain price of grains.

Currently, a transition process has been initiated to scout replacement for the incumbent CEO.

Faria was appointed to the current role in 2013 to manage 19 commercial offices, 11 industrial units, two joint ventures and routine export procedures involving more than 120 countries.

In March, federal police investigation was launched to probe Brazilian food companies after reports emerged that government officials were bribed to look the other way as contaminated meat was exported to different global markets including Europe.

In what was called “Operation Weak Flesh”, enforcement authorities raided plants belonging to BRF and its rival company JBS.

In the following month, two executives belonging to BRF were charged along with 58 others, for colluding with Brazilian health officials to dilute food safety inspections.

Meanwhile, the company called for stringent inspection standards to help tide over the corruption crisis that rocked the meatpacking industry in the country, according to Reuters.

BRF Brazil vice-president Alexandre Almeida was quoted by the news agency as saying: “We have to work with the government because other countries may take advantage of eventual failures in Brazil’s position.”

According to media sources, the company is planning to offload its middle-east business One Foods on the back of uncertainties in supply and demand, as well as increase in taxation and competition.