Riyadh – Some of the Brazilian companies exhibiting at Saudi Agro-Food, a trade fair for the food and agribusiness industries taking place in Riyadh, Saudi Arabia, are confident that they will break into the market or expand already existing business deals. "Our products were accepted 100% by local tastes, flavour-wise. I have hopes that [the fair] is going to yield results within a very short time span," said, for instance, the export manager of cheese manufacturing company Tirolez, Paulo Hegg.
Tirolez exports to other Arab countries and is attending frequent fairs in the Middle East, but is exhibiting in Saudi Arabia for the first time. "It is an opportunity to get to know this market up close. This is the world’s fourth largest cheese market, and it is very open to new things,” said Hegg on Tuesday (3rd), the second-to-last day of the fair.
The fact that the company already maintains operations in the region favours its entry into the country, as it has the labels, packages and catalogues written in Arabic, and has already had contact with local importers at other trade fairs.
Some of the products that pleased visitors at the stand were cream cheese, cream ricotta, smoked provolone, cheddar, parmesan and the typically Brazilian coalho cheese. Hegg hired a helper to grill coalho cheese and offer it to visitors. To him, the Brazilian products may be introduced in the country as a cheaper alternative to European cheese.
Betting along the same lines is Hideyuki Kamimura, of Bauducco, a traditional maker of pastries and biscuits. "I have great expectations, but this is a difficult market, as local competition is fierce," he said. He believes, however, that it is possible to make way against European products, which are usually more expensive.
Bauducco already sells to Saudi Arabia. The company sustains an agreement with the group that owns the Danube supermarket chain, aside from exporting to other Arab countries. Now, the company wants to increase its presence in other stores, which can be done through the same partner, as the Saudi group also owns a distribution company.
According to Kamimura, the Middle East is one of the priorities for Bauducco when it comes to exports, so much so that the company has already participated this year in Gulfood, the leading food fair in the region, held in Dubai, in the United Arab Emirates. He added that there is a strong demand for items such as wafers and stuffed muffins, as well as for light items.
Hegg, of Tirolez, stated that with regard to cheese, there was also much interest in light products. Representatives of some of the Brazilian companies visited large stores of the Danube and Panda chains in Riyadh, and ascertained that there is a strong presence of light and diet products. In the Middle East, where the rate of diabetes is very high, there is a growing concern with healthier eating.
Presence
Both Kamimura and Hegg underscored the importance of being at the fair in order to close deals. Along the same lines, José Farhat, a trader with Alliance Commodities, claimed that the fair provides a unique opportunity for direct contact with potential clients. "The best and most comprehensive fair in the region is Gulfood, but this here is the only fair that grants us this excellent opportunity of specific access to Saudi Arabia," said Farhat.
Of all products showcased by Alliance, according to Farhat, the one that is attracting the most interest is a type of milk powder from which animal fat has been removed and replaced with another one, of vegetal origin, thus making the product cheaper.
Farhat, who speaks Arabic, added that knowing the language is a strong differential. "The level of acceptance changes drastically," he said. He also explained that as important as taking part in the fair, one must follow up one’s contacts. "If there is no follow up, then the effort will have been in vain. The first thing to do upon returning home is to let them know you are alive, and to do what you have promised to do," he stated.
In the opinion of most exhibitors, closing deals at the fair itself is difficult, thus making follow-up work even more important. "We have not made many actual contacts, it was a little weak, but we have stricken a few good conversations. I believe that the market has potential," claimed the foreign trade manager with Mococa, Sandro da Conceição. The company’s flagship product is condensed milk.
Despite the positive expectations of Brazilian exhibitors, it is virtually a consensus that Saudi Agro-Food is more of a fair for agricultural inputs than it is for ready-to-eat foods. A significant share of the stands showcases product such as machinery and equipment, feed, vaccines, fertilizer, seeds and even live animals, mostly chicks.
According to the international director of the Brazilian Slaughterhouse Association (Abrafrigo), Thomas Kim, there is not much of a demand for meat, for instance. "This does not mean that Brazil cannot participate, but the country should bring more production-oriented technologies and inputs to the fair," he claimed.
*Translated by Gabriel Pomerancblum
