Geovana Pagel*
São Paulo – In the first two months of 2005, Algeria imported a total of US$ 6.5 million in whole and skimmed powdered milk from Brazil. In terms of volume, 3,300 tonnes were shipped. "Algeria is a great importer of dairy products and Brazil is winning this market more and more," according to the president of the National Committee of Dairy Cattle Farming at the National Confederation of Agriculture (CNA), Rodrigo Alvim.
Last year, Algeria was the second largest importer of Brazilian dairy products. The country purchased US$ 10.6 million, in terms of volume, the total was 5,500 tonnes, including powdered and condensed milk. Algeria only lost to another Arab country, Iraq, which imported US$ 12.8 million, or approximately 5,900 tonnes of powdered milk.
According to the figures supplied last week by the CNA, revenues obtained with Brazilian dairy exports reached US$ 20.12 million in the first two months of 2005, 254.4% greater than the US$ 5.67 million registered in the same period last year.
"These figures show the competitiveness of the Brazilian dairy sector," stated Alvim. In terms of volume, dairy exports totalled 11,830 tonnes in the first two months, 148.6% more than the 4,760 tonnes shipped in January and February last year.
"We have different products, such as condensed milk, which is not produced in all countries that have a tradition of dairy exports," pointed out Alvim. Figures exclusively for the month of February show that dairy product export revenues reached US$ 8.6 million, against US$ 2.46 million in February 2004.
A total of 5,270 tonnes of products were shipped, against 2,230 tonnes last year. "The figures show that Brazil has managed to increase the number of destinations for domestic dairy products," pointed out Alvim. Angola purchased US$ 623,000 in condensed milk and South Korea imported US$ 947,000 in Brazilian mozzarella.
Negative trade balance result
Last year Brazil changed from being a large dairy product importer and started producing a surplus for export. Although sales grew in the first two months, the trade balance result was still negative, US$ 1.25 million, against US$ 5.6 million in the same period last year. "Dairy product exports are rising, but the appreciation of the Brazilian real against the dollar has permitted an increase in imports," according to Alvim.
In the first half of 2005, Brazilian dairy product imports totalled US$ 21.37 million, against US$ 11.27 million in January and February last year. "Exchange rates are worrying, as they favour imports, and this has been happening over the last year. What is making us feel a little more comfortable is the fact that exports are still on the rise. But continued growth depends on a better exchange rate levels," stated Alvim.
The president of the CNPL also points out the importance of adopting actions like minimum prices for import of powdered milk, a regime adopted with industries in Argentina, at the end of the month of February. "The measure (taken by the Foreign Trade Board – Camex) avoids possible dumping, i.e., the sale of dairy products on the Brazilian market at prices lower than cost prices," explained Alvim.
According to the executive, the measure was the answer to a request by the National Confederation of Agriculture and Livestock (CNA). The first time Brazil adopted antidumping measures with regard to the import of Argentine powdered milk was in 2001, and it lasted three years.
In February 2004, at the end of the life of the first edition of antidumping measure, the CNA asked for revision of the papers. "Since these measures were taken, Brazil and Argentina expanded their global dairy product exports, strengthening the Mercosur, the customs union between Brazil, Argentina, Uruguay and Paraguay, as a hub in the sector," stated Alvim.
*Translated by Mark Ament
