São Paulo – Revenues from Brazilian beef exports to the Middle East have grown by 94% from January to November this year compared with the same period of last year. The region was the one to which sales increased the most during the period, followed by North Africa, which also comprises Arab nations. North African imports have risen by 75%, generating US$ 573.7 million in revenues. The Middle East purchased the equivalent of US$ 1.19 billion.
“Those are oil producing countries in which purchasing power has increased and revenues have grown. The improved purchasing power leads people to consume more. There has also been population growth (in those regions),” said the chairman of the Brazilian Beef Industry and Exporters Association (Abiec), Antonio Jorge Camardelli. There are Arab countries in the Middle East, but there are also other beef buying countries such as Israel and Iran.
From January to November, Brazil exported a total of US$ 4.4 billion in beef, a figure at 1.59 million tonnes shipped. There was growth of 19% in terms of value, and a 2% decline in terms of volume. The Abiec has revised its export projection for the entire year down from US$ 5 million to around US$ 4.9 billion, according to Camaradelli. The volume shipped should reach 1.64 million tonnes this year. In 2009, export revenues reached US$ 4.1 billion and shipments totalled 1.924 million tonnes.
The increase in revenues that should be recorded this year will take place despite the shortcomings faced by the segment, such as the appreciated real (Brazilian currency), restriction on sales to the United States and the European Union. Next year, the forecast is that export revenues should range from US$ 5.3 billion to US$ 5.5 billion. The Abiec, in tandem with the federal government, has selected four potential markets to which it will attempt to sell more: China, Angola, Cuba and Morocco. Others, such as Japan and Indonesia, are yet to be opened.
The Moroccans, for instance, import 10,800 tonnes of beef per year. From January to November this year, Brazil supplied 25 tonnes to the country, which is Arab and located in North Africa. Angola imports 7200 tonnes of beef from the world each year, of which Brazil had supplied 4,900 tonnes up until last month. Cuba purchases 34,500 tonnes from the world each year, of which 1,900 tonnes consisted of Brazilian beef, and China imports 398,000 tonnes, of which Brazil only sold 1,500 tonnes from January to November.
Brazil is seeking other markets as it maintains talks with the United States and the European Union regarding beef exports. The United States have restricted purchases of beef from Brazil due to having found higher doses than allowed of the anthelmintic Ivermectina in some batches exported. The talks between the two countries regarding the matter are ongoing. This Monday afternoon, a conference call should be held among the governments of Brazil and the United States about the subject.
As for the European Union, Brazil is attempting to reach an understanding regarding the Hilton Quota. The quota concerns special hindquarter baby beef cuts, which are priced up to four times as much as regular beef. Brazil has an agreement to sell 10,000 tonnes of this type of beef per year, at tariffs no higher than 20%, to the European Union. However, over the 12-month period ended June, it was able to sell less than 10% of that amount, due to the requirements of the EU.
The economic bloc demands that this type of import consist of pasture-fed cattle meat alone, but at the same time it makes demands regarding cut size which are impossible to meet by raising the cattle on pasture only. This is being regarded as a barrier by Brazil, which is considering setting up a panel at the World Trade Organization (WTO) against the European Union. Revenues from sales to the EU have risen by 14% from January to November this year and reached US$ 634 million. To the United States, they have dropped by 81% and totalled US$ 84 million.
*Translated by Gabriel Pomerancblum
