São Paulo – Brazilian poultry exports to the Middle East in terms of volume went against the trend in the sector and increased in 2013. According to the report on last year’s activities released this Thursday (16) by the Brazilian Poultry Union (Ubabef), Brazil shipped 1.448 million tons to the countries in the Middle East in 2013, an increase by 3.7% in relation to 2012. In all, poultry exports reached 3.89 million tons, volume 0.7% lower than in 2012. Despite the decrease, revenues increased by 3.4%, reaching US$ 7.97 billion.
The Middle East, in 2013, continued as the greatest destination for Brazilian poultry exports. Saudi Arabia is still the greatest buyer of the product: the country imported 688,000 tons of poultry, equivalent to 18% of Brazilian exports. The second greatest client was the European Union, with purchases equivalent to 11% of total exports, followed by Japan (with 10% of the total), Hong Kong (9%), United Arab Emirates (6%) and China (5%).
Markets director at Ubabef, Ricardo Santin, stated that the increase in exports to the Middle East is the result of the long-lasting partnership exporters have with buyers in the region and because Brazil strictly follows halal slaughtering procedure, according to Islamic law. “The Middle East is strategic for us. They did not suffer so much, in this segment, the effects of the global crisis. And we comply with halal requirements. So, we are able to overcome economic obstacles. The sales increase we had with them was not incredible, but it is a consolidated market which shall continue to be our greatest client,” he said.
According to Santin, Saudi Arabia and the United Arab Emirates are still the country’s main buyers in the Middle East, but other countries in the region have shown an increase in 2013, such as Jordan and Yemen. Sales to Iran, which is not Arab, have declined due to economic embargos. As for Iraq, the strong presence of Turkish exporters affected Brazilian sales. Even so, Santin believes it is possible to recover market share in these countries in 2014.
After Saudi Arabia and the UAE, which imported 244,000 tons in 2013, the greatest buyers in the Middle East were Kuwait (with imports of 113,000 tons), Yemen (85,000 tons), Iraq (75,000 tons), Oman (61,000 tons), Qatar (60,000 tons) and Jordan (58,000 tons).
Exports to Africa, third continent in the list of greatest importers of Brazilian poultry, dropped by 12.2% last year, reaching 525,000 tons. The reason for this decrease, explained Santin, was the over taxation policy practiced in South Africa and the political instability in Egypt. Exports to the North Africa country dropped by 26% adding up to 87,000 tons in 2013. In the previous year, exports to Egypt reached 119,000 tons. “Egypt now receives less tourists, and with tourism in decline, imports tend to decrease,” said Santin.
In 2013, exports to Asia, second greatest destination for Brazilian poultry, reached 1.11 million tons, a drop by 1.9% in relation to 2012. Shipments to the European Union decreased by 6.5%; to the Americas there was an increase by 29.8% (to 281,000 tons); Europe registered a decrease by 15.6% (95,000 tons) and Oceania a decrease by 16.2% (2,000 tons).
Global performance
In general, the lower volumes exported in 2013 did not have a negative effect on the sector’s performance, as revenues increased. “Other countries, such as the United States, registered losses in 2013, but we didn’t. We managed to increase our revenue,” stated Santin.
In the statement issued by Ubabef, the institution’s president, Francisco Turra, estimates that Brazilian exports will grow between 2% and 3% this year in relation to 2013 as exports to China are expected to increase. The sector also hopes to start selling to markets such as Nigeria, Myanmar and Pakistan and negotiate the tariff reductions in India. If all these forecasts are confirmed, exports may increase as much as 5%.
In total, Brazilian poultry exports reached 4.07 million tons in 2013, a decrease by 1.5% in relation to 2012. Revenues, on the other hand, had an increase by 2.3%, reaching US$ 8.55 billion. The sector’s exports include sales of chicken, turkey, duck, garganey, goose, eggs, chicks, fertilized eggs and genetic material.
Ubabef expects growth in the internal market as well, due to the increase in tourism and consumption that will come with the World Cup. “Studies by the Brazilian Tourism Institute related to the 2014 FIFA World Cup in Brazil indicate the arrival of more than 500,000 foreign tourists, who will be spending particularly with lodging and food. In this scenario, the poultry sector will see benefits,” said Turra in the Ubabef statement.
*Translated by Silvia Lindsey
