Marina Sarruf*
marina.sarruf@anba.com.br
São Paulo – The Arab market is excellent, mainly for cattle beef. This statement was made yesterday (11), in São Paulo, by the minister of Agriculture, Livestock and Supply, Reinhold Stephanes, "it is currently our third main market and may expand," said the minister.
Stephanes recently signed a cooperation agreement with the Arab Brazilian Chamber of Commerce, and the objective is to expand trade partnerships with the 22 countries of the League of Arab States. The first joint action is going to be participation in the Gulfood, the food sector fair in Dubai, to include the presence of 30 Brazilian companies.
At the same time, representatives of the ministry should promote an institutional mission to Saudi Arabia. The minister himself should travel to the Arab world still in the first half.
Last year, agribusiness products answered to 66% of Brazilian exports to the Arabs. Sector shipments to the region generated US$ 4.6 billion. The main products shipped were cattle beef, chicken and sugar, which together answered to around 80% of the total traded. In cattle beef alone, Brazil exported US$ 1.9 billion to the Arab League, an increase of 27% over 2006.
According to Stephanes, Brazilian agricultural production should grow, on average, between 3% and 4% over the next ten years. "Agribusiness projections are excellent as the world is demanding many products and Brazil is one of the few countries that can supply," said the minister, after participating in a meeting of the Supreme Agriculture Council at the Federation of Industries of the State of São Paulo (Fiesp).
In 2007, total agribusiness exports generated US$ 58.4 billion, an increase of 18.2% over the previous year. Sector imports totalled US$ 8.7 billion, growth of 12%, which resulted in a surplus of US$ 49.7 billion, the largest in history. "The Brazilian agribusiness trade balance surplus was greater than the whole Brazilian trade balance surplus," pointed out Roberto Rodrigues, former minister of Agriculture and chairman of the Superior Agribusiness Council (Cosag).
According to Stephanes, Brazilian products are exported to over 150 countries and cattle beef is among the main export products. Sales of the product last year totalled US$ 4.4 billion, being the European Union the main market, with 31.6% of exports.
However, two weeks ago the bloc cancelled the import of Brazilian beef. "The basis for the embargo is purely commercial. But we have to play within the rules of the game," stated the minister. "What is now being discussed is not the sanitary aspect or quality of Brazilian beef, what is being discussed is the form of tracing the beef," he added.
According to him, it is necessary to review the number of properties that may export to the European Union. Brazil must approve at least 5,000 farms to have enough volume for export.
*Translated by Mark Ament
