Minerva Slumps as Russia Suspends Beef Imports: Sao Paulo Mover
Minerva SA, Brazil’s third-largest beef producer by market value, dropped to a five-month low as Russia suspended beef imports from one of its plants.
Shares of the Barretos, Brazil-based meatpacker fell 2.8 percent to 10.15 reais at 4:08 p.m. in Sao Paulo. A close at that level would be the lowest since Dec. 18. Trading volume was 2.4 times the three-month daily average.
Russia “temporarily” halted beef imports from a plant in the state of Goias, Minerva said in a regulatory filing yesterday after the newspaper Valor Economico reported the suspension. The company said it is working to adapt plant conditions to Russia’s requirements.
“The suspension gives investors a bad feeling,” Felipe Rocha, an analyst at brokerage Omar Camargo, said by phone from Curitiba, Brazil. “Every now and then, we hear Russia is threatening to take that kind of measure against Brazilian meatpackers, so we never know if it’s really because of sanitary problems or if there is another reason behind it, such as political or regarding price negotiations.”
In December, Russia’s food safety agency said it was considering a Brazilian beef import ban because of a possible case of mad-cow disease. No action was taken.
Sao Paulo-based Valor also reported yesterday that Russia suspended imports from two plants operated by Marfrig Alimentos SA (MRFG3), Brazil’s second-biggest meatpacker.
Marfrig said today in a regulatory filing that it hadn’t been notified and that if the halt is confirmed it will export beef from other factories to Russia. Sao Paulo-based Marfrig’s shares declined as much as 1.4 percent to 7.20 reais before rising 2.6 percent to 7.49 reais.
The press offices of Minerva, Marfrig and Brazil’s beef exporters’ association didn’t respond to phone calls and e-mail messages from Bloomberg News seeking comment.
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