Brazil scandal hits parent company of JBS abattoir

SHARES in the largest meat processing company in the world, JBS, have been hit after reports of a corruption scandal in Brazil meat industry emerged.

China and South Korea have suspended some imports and the European Union is calling for a partial ban after an investigation was launched into bribery allegations.

Meatpackers in Brazil allegedly paid off health inspectors and politicians to overlook practices including processing rotten meat and shipping exports with traces of salmonella, ABC reports.

JBS Australia, a division of the JBS Global, operates abattoirs near Toowoomba and Ipswich which are major employers in the region.

There is no suggestion any Australian abattoirs are involved in the scandal.

JBS S.A. shares fell from $11.98 on March 17 to $9.98 on Monday, March 20. They have since recovered to $10.84.