São Paulo – Arab Spring was beneficial for Brazilian grain storage system manufacturer Kepler Weber’s sales. In an interview to ANBA via email, Foreign Trade for new markets manager, Antônio Campos, claimed that business in the region is growing after the revolution leading to the change of government in some countries of the area. He added that the exports should account for 15% of the company’s revenue in 2014.
“The Arab countries are already an interesting market for Kepler Weber and, since the reorganizing of the region after the Arab Spring, the company has increased the sales in the place”, said Campos.
According to the manager, storage systems are the company’s most sought-after item by Middle East and North Africa clients, more so than its dust collection systems, conveyors and grain dryers. According to information from the company’s website, Kepler Weber has representatives in Algeria, Egypt, Morocco, Somalia, Sudan, Saudi Arabia, Qatar, United Arab Emirates, Iraq and Syria.
Among the North African countries, Tunisia, Egypt and Lebanon changed presidents since late 2010. Tunisia has also adopted a new Constitution, and Egypt will have elections for the second time on May 26th after the resignation of president Hosni Mubarak, early 2011.
In Libya, leader Muammar Gaddafi was killed in October 2011 and a new government took over. Among the Gulf countries, in Yemen ex-president Ali Abdullah Saleh resigned in November 2011. In Syria, Bashar Al Assad’s regime wages a civil war on opponents, and in other countries in the region the governments make concessions to the demands of the people.
The uptrend in food price was one of the catalysts to the Arab Spring, and after the insurgence of the people, countries in the region increased their food stuff imports in order to increase the offer and keep regular stock.
Increase in exports
According to Campos, foreign sales are increasing this year. In Q1, he said, they were larger than expected. “We are optimistic for 2014 and we expect the total sales for the foreign market [including all the countries we deal with] to be around15% of the total revenue of the company”, he said.
In 2013, Kepler Weber profited R$ 594.7 million (around US$ 268.8 million), an amount 40% higher than in 2012. The exports accounted for 13% of the earnings last year. In 2012, they had accounted for 23% of the income, according to Q4 balance in 2013. In Q1 this year, Kepler Weber’s income amounted to R$ 173.2 million (US$ 78.29 million). Out of this amount, 12% were generated by exports, a volume 70% larger than the exports in Q1 2013, according to data released in the beginning of the week by the company.
*Translated by Rodrigo Mendonça
