São Paulo – Jordan and Saudi Arabia are among the target market for Brazilian rice exports. The Brazilian Export and Investment Promotion Agency (Apex) and the Brazilian Rice Industry Association (Abiarroz), in partnership with the Rio Grande Rice Institute (IRGA), signed on Tuesday (22) an agreement for the Sector Project for 2012/2013, aimed at promoting sales of products abroad.
The agreement should include investment of R$ 2.6 million Brazilian reals to promote rice and its product commercially in the Arab countries, including South Africa, Angola, Nigeria, Spain, Cuba and Chile. The countries were selected based on a market mapping study developed by Apex. "We studied the markets with greatest potential for growth and, together with companies, noticed which would provide the best return,” explained Alberto Bicca, Project manager at Apex.
"The Arab market was chosen because the Brazilian products may be explored in those markets, as they have growth potential,” explained Rogério Bellini, Business director at Apex. "Over the next two years we will develop a set of actions to be translated into cooperation with Brazilian companies,” he said.
Among the actions that should be promoted in the Arab countries is promotion of the Buyer project, with visits by buyers to participate in sector fairs in Brazil, and also the Seller Project, with business roundtables in the Arab countries. "The market in the Middle East is a great consumer of rice and buyer from Thailand. These countries (Jordan and Saudi Arabia) will be the gateway for companies to sell in the region,” said Fernando Schwanke, a technician at Abiarroz.
In the 2010/2011 crop, Brazil exported 2.089 million tonnes of rice. The agreement plans to increase these sales by 15%. In the first two months of trade of the 2011/2012 crop, exports have already reached 340,000 tonnes. "Brazil produces 11 million tonnes and consumes eight. The surplus is exported. The project aims at maintaining exports at the same level so there may be equilibrium for farmers. The Brazilian product is one of excellence,” pointed out Schwanke.
The agreement will start with the training of sector companies. Currently, of the 46 associates of Abiarroz, only 20 sell to the foreign market and most sales go through trading companies. The focus of the agreement, however, goes beyond exports of rice in grain.
"The project is aimed at developing the rice product industry, like oil, chaff and rice flour,” said Bicca. "The objective is to add value to the productive chain. Rice flour, for example, does not contain gluten and may be shipped worldwide to be sold in coeliac product market,” explained Schwanke.
*Translated by Mark Ament
