São Paulo – The Arab countries became the third largest destination of exports from Brazil last year, according to figures by the Arab Brazilian Chamber of Commerce. In 2018, they were the fifth largest international buyers from Brazil, at USD 11.4 billion worth of imports, and in 2019 climbed two positions, at USD 12.1 billion worth of imports.
Exports from Brazil to the Arab League climbed by 6.3% in 2019 from a year before. Together, the Arab countries stood only behind China and the United States as the destination of Brazilian products last year, while a year before they ware behind Argentina and Netherlands as well as China and US.
According to the Arab Chamber, the Arab markets supported the demand and maintained their loyalty to Brazilian partners in a year when major buyers reduced their purchases. It was China’s case, which exterminated part of their herd due to the swine fever, impacting the demand for soy bought from Brazil, and Argentina’s, which has been through a huge economic crisis.
“Whereas the world bought 7.5% less from Brazil, around USD 224 billion, and the surplus was down by 19.46%, to USD 46.674 billion, the Arab countries have increased their orders once more, reinforcing the importance of this trade partnership for our economy,” Arab Chamber president Rubens Hannun was quoted as saying in a press release.
Top products Brazil exported to the Arab countries were poultry, sugar, iron ore, beef, and grain. Poultry sales were up by 6.4%, to USD 2.3 billion; sugar was down by 23.6%, to USD 2.1 billion; and iron ore was up by 7.2%, to USD 1.8 billion. Beef exports climbed by 2.6%, to USD 1.1 billion, and grains skyrocketed by 46.4%, to USD 1.1 billion.
“Saudi Arabia has determined that by 2030 only 40% of the poultry demand, for example, will be met by exports. Now this percentage is close to 60%. In this scenario, leading Brazilian companies in food supplements and vaccines and genetics for livestock production have a great opportunity for going international. Next April, we’ll hold an economic forum to discuss these opportunities,” Hannun said about the Brazil-Arab Countries Economic Forum to run on April 14 in São Paulo.
Translated by Guilherme Miranda
