São Paulo – The good performance of the Arab nations as importers has caused the Organization of Brazilian Cooperatives (OCB) to estimate that by the end of the year they should receive 20% of all that the cooperatives ship abroad. Nowadays the Arab market buys 16.3% of the total exported by Brazilian companies. Up to late last year, they bought just 13.8%. "We have gained 3% of this market in a period of retraction of global trade. That is why we believe it is perfectly possible to reach this target," said Marcos Mattos, technical advisor of the market management department at OCB.
In the first quarter of 2009, Brazilian cooperatives exported US$ 108 million to the Arab countries, against US$ 105 million from January to March 2008, growth of 2.51%. The figures are included in an OCB market study disclosed every three months.
According to the study, São Paulo answers to 71.5% of the total exported by Brazilian cooperatives. From January to March 2009, the state exported US$ 77 million to the Arab world. The main destination was Saudi Arabia, which imported US$ 58.5 million in the first three months of 2009, against US$ 21.8 million in the same period in 2008, growth of 168%.
In terms of volume the growth was lower, 125.5%. It rose from 84.75 million tonnes in the first quarter of 2008 to 191 million tonnes in the same period this year. The main product shipped by the cooperatives of São Paulo to the Saudis was sugar. Juices, meats and poultry were also included in the basket, but with participation of just US$ 177,000.
"The whole bloc registered growth. The increase in consumption and domestic income was responsible for the growth. Despite the crisis, the Arab market ended up consolidating itself with new participation in the export basket of cooperatives," said Mattos. "The countries of the League of Arab States are large consumers of Brazilian poultry and beef," he added.
Sugar shipments from Brazilian cooperatives to the countries of the League of Arab States recorded growth of 129% in the first quarter of 2009. They rose from US$ 37.3 million last year to US$ 85.3 million this year. In terms of volume, the growth was 86.4%. Exports reached 272 million tonnes, against 146 million tonnes last year.
Exports to the Emirates, the second main market for Brazilian cooperatives in the region, grew 232%, from US$ 7.33 million in 2008 to US$ 24.3 million in 2009. Sugars were responsible for US$ 20.3 million.
Products like chicken, which reached US$ 7.3 million in exports in the first quarter of 2008, dropped to US$ 3 million in the same period in 2009. In percentage terms, the retraction was 58.5%.
In third place came Algeria, which imported US$ 8.5 million from cooperatives, mostly whole powdered milk. Despite the good position, the country registered a 62% reduction when compared to the same period last year, when it imported US$ 14.4 million in wheat. "This year we have not yet exported wheat to Algeria. It is an unstable culture and in this crop we had problems with lack of supply for exports," explained Mattos.
According to him, the three main Arab importers represent 85% of exports of Brazilian cooperatives to the region.
In 2008, the cooperatives of São Paulo, Paraná, Minas Gerais, Santa Catarina and Rio Grande do Sul exported US$ 103.45 million and answered to 96% of the total exported by Brazilian cooperatives to the Arab world.
"The general expectation of cooperatives is to maintain the values reached in 2008, i.e., total exports of US$ 4 billion. With regard to products, maintenance of a strong rhythm of growth of soy and sugar is expected, alongside recovery of meats," said Mattos.
*Translated by Mark Ament