Isaura Daniel
São Paulo – Sanitary problems faced by the United States and the European Union are helping increase Brazilian agribusiness export to the Arab countries. Agricultural product sales from Brazil to the Middle East rose 61.7% in the month of May with regard to the same period last year, and 40.5% to Africa, including to Arab countries on that continent. This percentage is well above the average 21% growth registered in general Brazilian agribusiness export.
"The Arabs have stopped importing from large Agricultural suppliers such as the United States and the European Union due to sanitary problems and are buying from Brazil," stated Ricardo Cotta Ferreira, international advisor for the National Confederation of Agriculture and Livestock (CNA). Herds in the United States, Europe, and Canada are facing problems with mad cow disease. There are also problems in Asian countries, traditional suppliers of chicken, suffering with Avian flu.
Cattle beef was, in fact, one of the products with greatest growth in agribusiness international trade. Product export revenues rose from US$ 255 million in May last year to US$ 477 million last month, an increase of 86.9%. In the business volume generated, cattle beef only lost to Soy.
Egypt, for example, a great world consumer of cattle beef, doubled its purchases of Brazilian cattle beef in May. "Egypt was a great importer of beef from the European Union," explained Cotta. The country is currently one of the main importers of Brazilian cattle beef.
Saudi Arabia, a country that consumes great quantities of chicken, also doubled its purchases of the Brazilian products in May. "They purchased from Thailand and France, and now they are buying our chicken," explained Cotta.
Lower subsidies
According to the CNA international advisor, there is yet another factor for the Arab replacement of suppliers: the reduction of subsidies. "The European Union and the United States are starting to reduce subsidies," he stated. This is already weighing against products from these two regions, making them less attractive. Agricultural subsidies will be one of the themes discussed at the next World Trade Organization (WTO) meeting.
The increase in export revenues was also pushed by an increase in international commodity prices. The price of meats, for example, has risen 34% in the first four months of the year in comparison to the same period in 2003. Soy had an increase of 30%, coffee 32%, cotton 4%, and fruit 20%.
The Middle East purchased US$ 250 million
Agricultural product export to the Middle East reached US$ 250 million in May, which represents 7% of the total sold internationally. Africa answered to 4.3%. In the same month in 2003, the Middle East had purchased 5.5%, and Africa 3.7%, of the total sold by Brazilian farmers.
From January to May, export to the Middle East generated US$ 925 million in revenues for Brazil, and sales to Africa generated US$ 777 million. The growth with regard to the same months in 2003 was 35% and 68%, respectively.
