São Paulo – Saudi Arabia has not lifted the embargo on Brazilian beef yet. A year and a half ago, the Brazilian government announced that an animal in the state of Paraná, which died in 2010, carried the causative agent of spongiform bovine encephalopathy, aka mad-cow disease, although it did not develop the disease. Ten months ago, the Global Assembly of Delegates of the World Organization for Animal Health (OIE) confirmed that Brazil’s status remains as having “insignificant risk” for the disease.
The embargo was discussed at meetings by the Arab Brazilian Chamber of Commerce CEO Michel Alaby this week in Riyadh, the Saudi capital. He spoke with the Brazilian ambassador to the Arab country, Flávio Marega, the commercial advisor to the embassy, José Renato Ruy Ferreira, other officials from the embassy’s Commercial Sector, and local importers.
Executives from the Abdullah Al Otheim Markets group, a supermarket chain with 123 stores throughout the country, have informed, according to Alaby, that the company used to be a traditional importer of the Brazilian product, but was forced to resort to other suppliers as a result of the embargo.
This and another importing group which Alaby visited said they hope Brazilians will be more aggressive toward their markets. Since Brazilian beef has been unavailable, the companies are being forced to increase their imports from countries such as India, Pakistan and Australia.
In talks with diplomats, the CEO heard that unless there is pressure from the importers, Saudi authorities are unlikely to clear the imports, but that the Brazilian government and exporters must also take action. According to Alaby, Brazil has not submitted information on the case requested by the Arab country.
According to the Brazilian Ministry of Development, Industry and Foreign Trade, Brazilian beef exports fetched US$ 158 million in 2012, but dropped to a meagre US$ 203,000 mil last year.
*Translated by Gabriel Pomerancblum
