March 22, 2017, 2:04 AM GMT+8

A customer shops for meat in a supermarket in Sao Paulo, Brazil, on March 17. Photographer: Victor Moriyama/Bloomberg

Though Brazil has generated more than its share of scandal and corruption allegations recently, a new probe into sales of tainted meat there has sent shock waves far and wide. The so-called Weak Flesh investigation has generated allegations of widespread bribery and sales of bad meat both at home and overseas. In response, several countries have either banned or curbed beef and poultry from Brazil, the world’s largest exporter of both.

1. How serious are the accusations?

Investigators say they have evidence that 21 meat companies bribed government inspectors to approve sales and exports, even when the meat and poultry was contaminated or spoiled. Thirty-three federal inspectors are being investigated, according to the Agriculture Ministry.

2. Who’s been named?

Notably, JBS SA and BRF SA, Brazil’s two biggest meat suppliers. A JBS worker in Parana state has been accused of bribing inspectors. The company says it doesn’t agree with the employee’s actions and will take "applicable measures." Two BRF executives have been arrested. A BRF plant in Goias state was suspended by the government after allegations of irregularities. Police said the company shipped seven cargoes of salmonella-tainted meat to Europe. BRF said the meat was permitted under European standards, and that the plant follows national and international sanitary standards.

3. What do we know about the tainted meat?

Apart from the allegations against BRF and JBS, investigators say that in smaller slaughterhouses that supply the domestic market, meat, including sausages and cold cuts, was adulterated with ingredients including pig heads and cardboard. In some cases, they say, smells from spoiled meat were masked by applying acid. No cases of poisoning have been linked with the scandal. Brazil’s sanitary inspection system has had integrity in the past, says Pedro de Felicio, a food technology professor at the University of Campinas in Sao Paulo state. The cases unearthed by the current investigation, he says, may prove to be isolated.

4. Why is this such a big story?

Even if you don’t live in the South American nation, if you’re a carnivore, there’s a good chance you eat Brazilian beef and poultry. The country accounts for 20 percent of global beef exports and almost 40 percent of chicken exports. Beef, poultry and pork accounted for almost 10 percent of Brazil’s export revenues last year. BRF and JBS are among the largest companies in the country.

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5. What’s the market impact been?

China, the largest importer of Brazilian chicken and beef, has temporarily suspended shipments. The European Union, Japan and Chile also issued restrictions. Shares of Brazilian meat companies have tumbled. While it’s too early to quantify the potential implications for JBS and BRF, a quick stock-market recovery isn’t likely, JPMorgan said in a report March 20. The probe comes at a bad time for both companies. JBS plans an initial public offering in the U.S. later this year while BRF is pursuing a sale of shares in its unit that produces meat that is halal, that is, prepared as prescribed by Muslim law.

6. Is the probe connected to other corruption investigations?

There’s no such indication. But the Weak Flesh probe has been going on for at least two years in Curitiba, Parana state, the same place where the Car Wash investigation, a sprawling probe into bribes involving top executives and politicians, originated. The police allege some of the bribes by the meat companies were destined for political parties.

7. What happens next?

Police investigators say they have more, as yet unreleased information. In the meantime, JBS and BRF have been on a PR offensive, publishing newspaper ads and print-time television spots. The government is also trying to control the crisis, providing information on the investigation and about the sanitary inspection system. South Korea has already lifted import restrictions. If other countries follow, the worst of the supply disruption may soon pass.