São Paulo – Diversifying the Brazilian food-sector export basket to the Arab countries is one of the targets of the Brazilian Food Processors Association (Abia). “The large Brazilian food industry companies have always had very healthy relations with the Arab countries, mainly those in the beef sector, which have very expressive performance in the region. Now we hope that other sectors also grow and that the basket of products may be diversified," said the manager of the Economics Department at Abia, Amilcar Lacerda de Almeida.
The economist, who gave a talk to a delegation of Arab businessmen at the Arab Brazilian Chamber of Commerce yesterday (18), believes that Brazil has potential to export more biscuits, bread, sweets, chocolates, oil, fruit, vegetables, juice, maize and starch products. According to Abia figures, Brazilian exports of processed foods to the Arab market have been growing. Last year, sales to the League of Arab States totalled US$ 5 billion, which represented growth of 28% over 2007. In general, foreign sales of processed food from Brazil generated US$ 33 billion.
Whereas global imports of foods dropped in developed markets from January to April this year, Brazilian sector exports to the Arabs grew 6%, reaching a total US$ 1.44 billion. "I hope that this 6% may represent a very positive evolution," said Almeida. According to him, Abia has verified that imports of food from emerging markets are returning to growth after a reduction last year due to the food crisis. "I believe that we should soon return to two-digit growth," he added.
Apart from the expansion of trade with the Arabs, Abia and the Brazilian Export and Investment Promotion Agency (Apex-Brasil) believe in the possibility of expanding investment in the agro industrial sector. "It is very important for the Apex to attract investment in the Brazilian agribusiness sector. With this, we may have greater production, expand distribution and also promote new partnerships with other markets," said the manager of the Image and Market Access Unit at the Apex, Gilberto Lima Jr.
According to him, many Arab countries, mainly Saudi Arabia, have been seeking Brazil to invest in land. "The route is to establish partnerships in the agro industrial sector," said the Apex manager. During his presentation at the Arab Brazilian Chamber, Lima said that the Arab market is a priority for the government of Brazil. "From 2000 to date, trade between Brazil and the Arab market has grown 600%. This growth shows the potential of this partnership," he added.
At the Arab Brazilian Chamber offices, the delegation of Arab businessmen was met by the marketing vice president, Rubens Hannun, who also spoke about the importance of trade relations between Brazil and the Arab countries. "Despite the crisis, the trade partnership between both blocs has been growing," said Hannun, who recalled to the Arab businessmen the visit of the Brazilian president Luiz Inácio Lula da Silva to Saudi Arabia last weekend. “This shows that the partnership with the Arab world has been growing further and further," he added.
Businessmen
One example of Arabs seeking to diversify the import basket of Brazilian foods is the case of group Alsaeed Trading Company, from Yemen, which already exports sugar and maize and is seeking juice, milk and dairy products, coffee and sweets, among other products. "Brazil has a large diversity of products and that is what we are seeking," said the general manager at the group, Walid Hizam Dhafer.
The group, which was established in 1938 and started as a trading company, currently operates both in import and export of foods, has 12 factories in different sectors in the Arab country and another 15 food and package factories outside Yemen. The group employs 22,000 people.
The group currently imports foods from Thailand, Malaysia, Turkey and South Africa. For the production of food, the company imports over 1.3 million tonnes of wheat a year and over 200,000 tonnes of sugar. Among the products made by the group are biscuits, margarine, cardboard for packaging and cement. Apart from that, the group also operates in banking, hotel management, insurance and transportation.
Another group that already imports from Brazil and wants to diversify its imports is Al Maya Trading, in the Emirates. According to the head of the import and export division, Nandi Pagarani, the company also buys jerked beef, jelly, coffee and powdered milk from Brazil, and is now seeking rice and tomato sauce. The group is one of the largest retail chains in the Emirates and has distribution centres in Kuwait, the United Kingdom, Qatar and Bahrain.
Apart from these two groups, the business roundtables prior to the APAS fair in São Paulo also included another four companies from Jordan, Kuwait and Bahrain. The meetings, organized by the Arab Brazilian Chamber and the Apex, should take place today (19th), and on the 20th and 21st at the Expo Center Norte.
*Translated by Mark Ament
