Alexandre Rocha
São Paulo – Agribusiness export to the Arab countries generated US$ 647.7 million in the first three months of 2004, according to information supplied to ANBA by the Agriculture Ministry. There was an increase of over 95% in revenues as against the same period last year, when the total was US$ 331.8 million. In all, agribusiness sector export in the first three months of the year totalled US$ 7.839 billion.
There were significant increases in sales to most of the Arab countries, as occurred with total export to the region, a total of US$ 892.2 million in the period. The most significant increases were to Egypt, Syria, Algeria, Morocco, Libya, Yemen, the United Arab Emirates, Tunisia, Kuwait, Mauritania, Jordan, Lebanon, Qatar, Bahrain, and Sudan.
Export to Syria attracts great attention, having risen from US$ 2.6 million to US$ 35.4 million. Atallah believes that part of the country purchases are probably being re-exported to Iraq.
Saudi Arabia, although not having registered the largest increase among the Arab countries, is still the leader in agribusiness purchases in the region. In the first quarter of last year, shipping to the country generated US$ 115.1 million, and in the first three months of 2004, US$ 127.8 million.
Products
According to Arab Brazilian Chamber of Commerce (CCAB) president Paulo Sérgio Atallah, the main products exported to the Arab countries in the first quarter were sugar (US$ 180 million), chicken meat (US$ 170 million), cattle beef (US$ 90 million), wheat (US$ 85 million), soy oil (US$ 40 million), coffee (US$ 20 million), and milk (US$ 5 million).
He pointed out that the increase in sales of all products was substantial and some of them, such as wheat, were not even in the trade basket to the region in the first three months of 2003.
Brazil exported wheat for the first time at the end of last year, and the Arab countries in North Africa were among the largest buyers in the country.
Factors
Atallah also pointed out work by the CCAB, producers, and the government in opening markets and promoting certain products, as was the case with cattle beef. Algeria, for example, started importing the product from Brazil at the end of last year, after a sanitary accord was signed between both countries. And sales to Egypt rose greatly, so much that the country became, at the beginning of this year, the largest buyer of Brazilian cattle beef.
In the case of milk, he pointed out that Algeria is also a large importer of the product, still little exported by Brazil. "Algeria buys large quantities of milk from various countries around the world. It is a market to be explored," he stated.
Apart from actions for trade promotion, Atallah also pointed out that the visit by president Luiz Inácio Lula da Silva to five Arab countries in December helped increase export.
"This helped improve the Brazilian image. You sell a product that must be good quality, as it is food, going onto the table of citizens. This must therefore be followed by great marketing work, and the country must be credible in the sector," he stated.
Optimism
He stated, however, that the agribusiness sales increase is not surprising. "In reality, our expectation is that this will continue rising," he stated. In the first quarter of last year, sector export to the Arab countries dropped by the month, whereas this year, up to now, they are on the upswing.
"We forecast a very good first half and expect these positive results to be consolidated in the second half. I am very optimistic," he stated.
Atallah added that Brazilian producers and exporters must continue being "aggressive" in business. "That is our homework: being commercially aggressive," he stated.
But he pointed out that, more important than simply thinking about greater sales, it is necessary to provide incentives and increase the trade balance as a whole, also purchasing more. "This must be seriously considered. Growth must take place on both sides. It is very gratifying to see that happening," he finished off.
