São Paulo – Blairo Maggi, the minister of Agriculture, sees the Arab countries as strategic partners of Brazilian agribusiness and believes that trade involving the parts could grow even more. “We have a good partnership that can expanded and we’re working on this,” said the minister in an interview to ANBA via email.
Agriculture products are the main items in Brazil’s exporting list to the Arab world. From the USD 13.6 billion worth of products that the country sold to the region last year, agriculture items accounted for USD 10.4 billion, up 18% over 2016’s total.
The Arabs rely considerably in food imports, and to achieve food security for their populations is one of the main concerns of the nations of the Middle East and North Africa. So much so that this will be one of the most discussed topics at the Brazil-Arab Countries Economic Forum, an event organized by the Arab Brazilian Chamber of Commerce scheduled for next Monday (April, 2) in São Paulo. “I think that Brazil could provide this supply,” said Maggi.
More than import, these countries want to gain access to the production via investments in projects abroad, and Brazil is trying to attract part of these resources. Maggi said that he’s not against the loosening of regulation regarding the sales of land to foreigners but declared that restrictions should be enforced “in the case of the so-called ‘yearly crops’, such as soy and corn.” The minister is the country’s largest solo soy producer.
Read below the main excerpts of the interview:
ANBA – The Arab Brazilian Chamber of Commerce will hold, on April 2, in São Paulo, the Brazil-Arab Countries Economic Forum. Agribusiness and food security are among the main topics of the forum. The ministry sees the Arab countries as strategic partners?
Blairo Maggi – Of course it does. We have a good partnership that can be improved and we’re working on this. In February, for instance, the secretary executive of the ministry, Eumar Novacki, visited some countries in Asia and in the Middle East seeking new markets and to consolidate the Brazilian position already achieved in these places. Last year, I also made a trip to the Middle East – Saudi Arabia, Kuwait, Qatar, United Arab Emirates and Iran – to discuss the expansion of trade between Brazil and the region’s countries. We’re paying close attention to your (the Arabs) demands and we want the trade between us to grow in a way that is good for both sides.
In which way this partnership can be strengthened, since the Arab countries need suppliers that can deliver a stable supply of products?
Maggi – I think Brazil can provide this supply. We currently have an advanced agriculture sector. We are the largest producers of grains and are among the world’s largest producers of animal protein. We present all the conditions to handle the Arab market. We are one of the few countries that can meet some of the demands of the Arab countries, such as the halal meats. And the way to reinforce this partnership is to maintain permanent contact with our trade partners and try to diversify even more our list of trading products, such as fruits, milk and products, wines, legumes, and so many other high-quality items we produce.
On February 27, you launched the Development National Plan of Fruit Culture (PNDF), which has, among its goals, to increase fruit exports. This program anticipates some type of commercial promotion in the Arab countries?
Maggi – Despite Brazil being the world’s third largest fruit producer, we stand at only the 23rd place among the largest exporters. The long-term targets of the Development National Plan of Fruit Culture include reaching BRL 60 billion (USD 18.74 billion) share in the global fruit market, increasing domestic annual consumption of fruits to 70 Kgs per capita and reaching USD 2 billion in exports of fresh fruits and products until 2028. It’s a comprehensive plan and covers from new rules for the licensing for the use of agrochemicals products to the international standardization of phytosanitary certificates. Naturally, an important market such as the Arab won’t be left aside, we plan to work to include new products in our trading list. And fruits are among these products.
MAPA and other government agencies have been holding, here and in the Arab countries, seminars with the aim to attract investments from there to Brazil. What are the results of this initiative until now?
Maggi – I believe so. Looking at trade numbers between Brazil and the Arab countries we can see a consistent growth. We have today a surplus and continuous trade, estimated in USD 12 billion in sales. In agribusiness, for instance, nearly 20% of the poultry produced here is exported to the Arab countries. We also have a high volume of exports when it comes to sugar cane, cereals, flours, soybean complex, coffee, and many others.
What’s your opinion on the loosening of regulation on land sale to foreigners?
Maggi – I’m in favor, I don’t see major problems over this issue, after all, it’s Brazilian land, no one will take it away. The use of the land is what matters in this. But I think we should adopt some restrictions in cases such as the so-called “yearly crops”, such as soy and corn, but I believe that this issue is already being discussed in Congress and some solutions are already being proposed.
Last year, you traveled to Gulf countries to reassure regional authorities of the quality of the Brazilian meat, after the operation Carne Fraca. What the government has been doing to avoid problems such as this in the future (the ANBA questions were sent before the operation Trapaça on March 5)?
Maggi – During operation Carne Fraca, there was a mistake in the initial narrative released to the press. What was put in doubt was the conduct of some of the ministry’s staff and not the quality of our products. Even so, we took some measures to try to prevent new problems. We held a selection to hire new veterinarians, made some changes in supervision and are planning new changes. Recently, the European Union sent a technical team to visit our meat packing plants. In a meeting with ambassadors from EU countries, they said they liked what they saw. I think we’re in the right path.
You think the liberalization of the agricultural trade within the Mercosur-European Union agreement is possible?
Maggi – Yes, I think we are negotiating for quite some time already and everything’s in place for us to reach good terms. This is also the belief shared by EU’s ambassador in Brazil, João Cravinho. In the meeting I mentioned in the previous answer, he said he believed that the Mercosur-EU agreement is close. Thus, I think that, soon, we will have a significant increase in the bilateral trade between the two blocs, in a period of two to four years.
You said you do not intend to run for office this year. Are you staying put in the ministry until the end of the term of the current administration? What are your priorities until then?
Maggi – Yes, I plan to stay until the end of the year, when the term of president Michel Temer ends. The priorities will be to continue the projects that are already being developed since I came to the ministry in 2016. Programs such as the Agro+, which aims to eliminate red tape for internal procedures, the changes in inspection, the creation of new plans for the livestock and beans chains, the expansion of the share of the Brazilian agribusiness in the global market, anyway, there are many challenges.
Translated by Sérgio Kakitani
