Another senior executive from a French multinational with a strong presence in Brazil has criticized the possibility of signing a free trade agreement between the European Union and Mercosur. This time it was Olivier Leducq, CEO of the French sugar-energy group Tereos, owner of the Guarani sugar brand, who . He said the treaty will create a situation of “unfair competition” between European and South American agricultural products, favoring the latter.
“At a time when our members are focused on implementing regenerative agriculture practices, how will our farms face unfair competition from imported products that do not respect the same environmental and social standards? Fortunately, the mobilization of French and European farmers during the summit (G20) was strong and continues to be so!”, wrote Leducq on Linkedin.
Saying he is firmly opposed to signing the agreement as it is outlined today, Leducq called on French leaders to rally other member states in the battle to veto the treaty.
“It makes no sense to brandish mirror clauses as a guarantee of protection: they are inapplicable. French agricultural production must be able to remain competitive in the face of current agronomic and environmental challenges, while gradually implementing the foundations of low-carbon agriculture. The EU-Mercosur agreement, as it stands today, would put this ambition at risk. Together with our members and the French agricultural sectors, let us say no to an agreement that would sacrifice the future of our farmers and our territories!”, he stressed.
Tereos CEO tried to explain himself
The French executive’s post received a flood of different comments, from French people praising the initiative and Brazilians questioning the veracity of the allegations. Alexandre Leite, chief executive and co-founder of a UK-based startup, NaturAll Carbon, complained that Leducq was being unfair to Brazilian agriculture.
“Your company has been in this industry in Brazil for decades and is one of the largest producers there. You know very well the highest environmental and social standards implemented not only in sugar and ethanol, but also in Brazilian agriculture in general. Companies that see this differently should not operate in Mercosur. France’s veto of the EU-Mercosur agreement is leading Brazilian consumers to start boycotting French products and companies there. This won’t be good for anyone”, Leite stressed.
The Brazilian’s comment was the only one that generated a reply from Leducq, which was justified. “It is important to clarify that the concerns expressed in this post are not about the quality of Brazilian agriculture. But about the disparity in environmental and social standards between EU and Mercosur countries, including Brazil. Although Brazilian agriculture complies with its local regulations, they are not aligned with the demanding and costly standards required for EU and French agriculture”, he argued.
Tereos is among the largest sugar-energy plants in Brazil
Tereos is a cooperative founded in northern France in 1932, which currently has 12 thousand associated farmers. It arrived in Brazil in 2000 and is now among the five largest sugar-energy companies in the country. Crushed 21.1 million tons of sugar in the 2023/24 harvest, with net revenue of R$6.7 billion. Operating profit was R$1.3 billion, an increase of 120% compared to the second best year in the company’s history, in the 2020/21 harvest. Net profit in the last cycle of operations in Brazil was R$719 million.
Interestingly, when publishing these results, the French group highlighted the sustainability of its operations in Brazil. He stated that 100% of his own sugarcane has zero deforestation certification, as does a third of the sugarcane he processes from third parties.
With the criticism launched by the CEO of Tereos over the weekend, in less than a month there are already four large French multinationals that have attacked the sustainability of Brazilian agribusiness, despite having significant operations in the country. It started with Danone, a dairy giant, whose CEO , for not meeting environmental sustainability standards. After the reaction of Brazilians preaching a boycott of Danone products, , saying that there is no veto on Brazilian soy, anywhere in the world.
Carrefour and Tereos did not calculate the impact of criticism
French artillery, however, continued to target the South American bloc. When the dust seemed to settle in relation to Danone, it was the CEO of Carrefour who reignited the controversy. Alexandre Bompard released a note stating that . In practice, a move for the French fans, given that Brazilian meat exports to France are almost insignificant, reaching just 0.002% of the volumes shipped.
The boycott launched by Carrefour was promptly copied by another French supermarket chain, Les Mousquetaires. It owns the Intermaché and Netto brands, which do not operate in Brazil.
It appears, however, that the French did not adequately calculate the impact that these attacks would have on public opinion and Brazilian trading partners. On the eve of Black Friday and the intensification of end-of-year shopping, Carrefour’s Brazilian units are facing a “boycott of the boycott” and are at risk of not having meat to put on the shelves in the coming days.
Carrefour regrets impact on customers
The country’s main slaughterhouses, such as JBS, Marfrig and Masterboi, have decided not to deliver meat to the chain until the French CEO or Carrefour’s top European leadership recants. The movement had the support of the Minister of Agriculture, Carlos Fávaro, who reportedly called meatpacking managers calling for retaliation. The Federation of Hotels, Bars and Restaurants of São Paulo (Fhoresp) joined the boycott. In a new development, Fávaro stated that several chicken slaughterhouses also
In a note sent to Gazeta do Povo, the Carrefour Brasil group said it “deeply regrets the current situation”. Despite highlighting that there is still no shortage of meat in the group’s stores, the company foresees this possibility. “Unfortunately, the decision to suspend meat supply impacts our customers, especially those who trust us to supply their homes with quality and responsible products”, says the note.
“For 50 years we have been building and maintaining an excellent relationship with our partners and suppliers, based on mutual trust. Therefore, we are in constant dialogue in the search for solutions that enable the resumption of meat supply in our stores as quickly as possible, respecting the commitments we have with our more than 130 thousand employees and millions of customers throughout Brazil”, follow the note.
“We reiterate our commitment to the country, respect for the consumer and transparency at all stages of this process. We will continue working to resolve this situation in the best way possible, always with the aim of serving our customers with quality and excellence”, concludes the Carrefour statement.
Tereos Group talks about “regulatory differences” and denies attack on Brazil
Contacted by Gazeta do Povo, the Tereos group in Brazil also sent a clarification note, in which it emphasizes that the global CEO’s statement on the European Union-Mercosur agreement “refers exclusively to the need for a more in-depth discussion on the regulatory differences that impact economic competitiveness between the two commercial blocs”. “Under no circumstances is this a questioning of the quality of the products or the commitment of Brazil and Mercosur to sustainable practices”, says the statement.
In the note, the group’s management in Brazil goes against the grain of the French leader, who criticized the sustainability of production. “More than 60% of its total production in the country is exported, supported by rigorous international certifications of quality and socio-environmental sustainability”, concludes the note.
For former Agriculture Minister Antonio Cabrera, the controversy initiated by French executives is part of “a regulatory imperialism of the European Union, in which Brussels sees itself as an exporter of rules to third countries – like the world’s legislators”.
“What is most impressive about this irresponsible statement is that Tereos has operations in Brazil and knows the Forest Code that Brazilian farmers need to comply with. (…) A genuinely competitive market remains the best constraint on large companies, even in our era of cultural war or times of sealing. In this case, we will boycott Tereos products in Brazil (such as Açúcar Guarani) until Mr. Leducq retracts this defamation he made against Brazilian agriculture”, preaches the former minister.
