São Paulo – Brazilian agribusiness exports to the Arab countries generated US$ 3.62 billion in revenues in the first five months of 2011, a 37% increase compared with the same period of last year, according to figures supplied by the Brazilian Ministry of Development, Industry and Foreign Trade and compiled by the Arab Brazilian Chamber of Commerce. The figures do not include Libya, a conflicted North African nation.
Saudi Arabia, Algeria, the United Arab Emirates and Egypt were among the 20 leading target markets of the Brazilian agroindustry between January and May, according to the Ministry of Agriculture, Livestock and Supply. All of these have significantly increased their imports compared with the same period of 2010.
Sales to Saudi Arabia reached US$ 807 million, an increase of 22%; to Algeria, US$ 556 million, 177% more; to the Emirates, US$ 459 million, 32% more; and to Egypt, US$ 436 million, growth of 24.6%.
Another highlight was the increase in sales to Morocco (26.5%), Tunisia (304%), Kuwait (38%), Oman (26%), Qatar (62.5%) and Sudan (368%). The main items shipped to the region were meats, especially poultry, sugar, grain, of which wheat and maize as highlights, and vegetable oils.
The CEO of the Arab Brazilian Chamber, Michel Alaby, stated that the figures reflect the stocking up that traditionally takes place before the Islamic month of the Ramadan. Besides, Tunisia, for instance, may be importing more to supply the supply its neighbouring country, Libya, and the refugees who came from the country.
In the case of Algeria, Alaby highlighted that the government has recently eliminated the import tariff on items such as sugar, wheaet and vegetable oils. Generally, Arab governments may also be increasing their purchases to stock up in order to regulate prices. It is worth noting that the food price hike was one of the causes of the recent popular uprisings in the region.
*Translated by Gabriel Pomerancblum
