São Paulo – Egypt is one of the target markets for exports of Brazilian bovine flour, according to Alexandre Ferreira, technical consultant with the National Union of Collectors and Processers of Sub-Products of Animal Origin (Sincobesp). The flour of animal origin is used for manufacturing feed for chicken, dogs and cats. It can also be made using birds’ bones.
Ferreira reports that Brazil exports a very small share of its annual production, which totals to around 2.5 million tonnes. In 2009, only 20,000 tonnes of animal flour were shipped to foreign countries. The average in previous years had ranged from 50,000 to 60,000 tonnes, however the appreciation of the Brazilian currency (real) led the already low quantities exported to drop even further. The leading foreign buyer of Brazilian animal flour is Chile.
“The exchange rate is the main inhibiting factor to business expansion,” says Ferreira. He also claims that the lack of an exporting habit on the part of companies in the industry hampers the growth of foreign sales. “The industry is not used to exporting. Not that there is a resistance to it, people just don’t know how to do it. The market must develop an exporting culture,” he believes.
An interesting aspect disclosed by the consultant is that a significant share of Brazilian flour arriving in Egypt is resold by United States-based companies, instead of being purchased directly from Brazil. According to him, there are no exact figures available as to how many tonnes of animal flour Brazil exports to the Arab country.
According to Ferreira, due to the lack of an exporting culture, the union and the companies in the industry have not devised any strategies for increasing sales to Egypt yet. He, however, believes that a good solution would be to build a bonded warehouse at the Port of Alexandria. “There is a very broad field for increasing trade of this product in coming years.”
In his opinion, producers could form a pool to make animal flour available at the Alexandria Port, enabling local buyers to purchase it using trucks. “The logistical and qualitative gains would be huge,” he says.
The Sincobesp brings together 35 companies, located mainly in the South, Southeast, and Midwest regions of Brazil. Together, they account for 15% of Brazilian animal flour production. The remainder is manufactured by slaughterhouses.
According to the consultant, one of the main advantages of the Brazilian product is the country’s low rating in risk of transmission of mad cow disease. He also highlights the fact that Brazil is the world’s leading producer of bovine meat, and is therefore able to supply the foreign market.
*Translated by Gabriel Pomerancblum
