Common shares of BRF and JBS fell as much as 10 percent early on Monday after posting heavy losses on Friday.
JBS was down 0.2 percent at 4:30 p.m. (1930 GMT) as investors bet the scandal would have less effect on the world’s largest meatpacker, while BRF was still down 2 percent.
BRF could prove more vulnerable to the scandal since a larger share of its operations are physically based in Brazil, while JBS derives most of its sales from abroad, according to a report by Goldman Sachs analysts led by Luca Cipiccia.
The scandal “could be enough to compromise temporarily Brazilian protein’s acceptance worldwide,” Credit Suisse Securities analyst Victor Saragiotto wrote in a Monday note to
Chile is temporarily banning imports of all Brazilian meat products, the agriculture ministry said on Monday.
The European Commission said the scandal would not affect negotiations between the European Union and South American bloc Mercosur about agreements on free trade.
On the streets of Rio de Janeiro, Brazil’s second-largest city, the scandal left many consumers in doubt.
“My freezer at home is full of meat, and I don’t know what to do,” said Maria Fonseca, a saleswoman. “Should I eat it or just throw it all away?
“It is an enormous waste. If I lived in the countryside, I’d start raising my own cows and chickens!”