Brasil Foods says there will be no food shortage for Brazilians in supermarkets.
"From BRF's side, we don't see any risk of product shortages or supply disruptions, and there's no cause for concern," a company source emphasized.
RIO DE JANEIRO/SÃO PAULO (Reuters) - BRF, one of Brazil's largest food companies, has been operating normally despite restrictions imposed to contain the coronavirus in the country, but is preparing to shift its supply channels, with supermarkets and grocery stores demanding more than the "food service" segment, which serves consumers who eat out.
“What we acknowledge is that there may be a change in channels. As people stop eating out, you decrease supply to food service and increase it to supermarkets and grocery stores,” said the source close to the company, who asked not to be identified.
"What changes is the mix of the sales channel," he added.
After being contacted, the company stated that "it is catering to the market, which has seen a migration between channels, however, there is no expectation of significant changes in aggregate demand at this time."
"BRF is committed to meeting the demand for food in Brazil and around the world," he added.
According to the source, the company has not registered an increase in production at this time when there is greater demand from supermarkets, but is operating within relative normality, adopting the recommended practices to avoid the spread of the disease.
Last week, the company said in a statement that several measures and protocols have been adopted to preserve the safety of all people involved in its operational context, "in addition to determining contingency plans to sustain its operations."
Despite the protocols, the company is "delivering normally, shipping, and supplying customers," the source said.
"From BRF's side, we see no risk of product shortages or supply disruptions, and there is no cause for concern," he emphasized, stressing that governments need coordination to avoid measures that could potentially disrupt the flow of goods.
Regarding the foreign market, even at the height of the coronavirus crisis in China, Brazil's main market, the contracts ensured delivery without problems, he added.
AURORA IS ALSO NORMAL
Cooperativa Central Aurora Alimentos —another major producer and exporter of food, including poultry and pork, like BRF— stated in a note this Thursday that its production base in the field, with the support of its 11 affiliated agricultural cooperatives, is operating normally to generate essential raw materials such as poultry, pork, milk and grains, and that it has been following the guidelines of the authorities to prevent the spread of the coronavirus.
The company stated that, "joining the efforts of Brazilian society in combating the coronavirus pandemic and following guidelines from the Ministry of Health and health authorities, it has taken all necessary measures to ensure the health, safety, and well-being of its more than 31.000 direct employees, as well as its partners and outsourced workers."
He also stated that, "at this particularly worrying moment in national life, Aurora expresses its unwavering commitment to continue producing quality food for Brazil and the world."
According to Aurora's assessment, "this stance is essential, as the eventual lack or scarcity of food on the tables of Brazilians would make a situation that is already delicate and worrying from a public health perspective chaotic and unpredictable—from a food security standpoint."