Brazil meatpackers face hefty $126 mln freight bill -industry group

 

Reporting by Alberto Alerigi Writing by Ana Mano Editing by James Dalgleish, Reuters†

May 14, 2019

 

SAO PAULO, May 14 (Reuters) - Brazilís minimum prices for truck freight, imposed by the government in a deal to end a truckersí strike last year, generate additional costs of 500 million reais annually ($126 million) for meatpackers, an industry group said on Tuesday.

 

Minimum freight prices compromise companiesí ability to deliver goods efficiently, said Josť Perboyre, who coordinates a logistical group within meat industry association ABPA. Perboyre was speaking at a public hearing to discuss the governmentís new methodology to set truck freight prices.

 

ďAs published, the proposal penalizes efficiency. We face an additional cost of half a billion reais in the sector,Ē Perboyre said during the hearing at the national transport agency ANTT.

 

A decree in the middle of 2018 imposing mininum freight prices was one of several measures proposed by the government to end an 11-day truck driver protest earlier that year. Truckers had gone on strike to protest against higher diesel prices.

 

The protests blocked Brazilís main highways and delayed shipment of goods to local markets and ports. In the meat industry, millions of birds were starved as trucks loaded with feed failed to reach feedlots in time...

 

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https://www.reuters.com/article/brazil-freight/brazil-meatpackers-face-hefty-126-mln-freight-bill-industry-group-idUSL2N22Q1IP