Brazil farm town’s coronavirus lockdown could affect Bunge, Cofco

30 . março . 2020

New throughout, adds more comments from lawyer who studied decree

SAO PAULO, March 23 (Reuters) – A town in the heart of Brazil’s farm country, Rondonópolis in Mato Grosso state, closed down all non-essential services and ordered suspension of industrial sites in response to the coronavirus crisis, according to a municipal decree.

Frederico Favacho, a lawyer who studied the March 21 decree, told Reuters on Monday soy crusher group Abiove might legally challenge the order, contending that the mayor lacks jurisdiction to enforce such a measure.

Favacho does not represent Abiove. He said at least two other towns, one in Bahia state and another other in Minas Gerais state, enforced similar decrees which his law firm is legally challenging on behalf of clients he declined to name.

China’s Cofco and U.S.-based grain trader Bunge BG.N are among companies that may be affected as they have plants in the city.

Favacho, who has clients in the agribusiness sector, said the measure would be detrimental to soy crushers that produce oil and soymeal in the region, and could affect commercial contracts.

Bunge and Cofco directed questions to Abiove, which declined to immediately comment.

(Reporting by Ana Mano Editing by Chizu Nomiyama)

((ana.mano@thomsonreuters.com; Tel: +55-11-5644-7704; Mob: +55-119-4470-4529; Reuters Messaging: ana.mano.thomsonreuters.com@reuters.net))

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