São Paulo – A Brazilian delegation in the dairy sector should travel to Algeria from November 10th to 13th, for meetings with government members and trade sector representatives. The objective is to return to business with the North African country, which has stopped buying dairy from Brazil. The trip is promoted by the Sector Project for Export of Dairy Products (PS-Lácteos), organized in partnership with the Brazilian Export and Investment Promotion Agency (Apex) and the Organization of Brazilian Cooperatives (OCB), with the support of the Ministry of Agrarian Development (MDA).
“Algeria is one of the main African dairy consumers. They import much and represent a significant potential for Brazilian products. Brazil has already sold (dairy) to Algeria in the past, but sales have stopped,” explained Bernhard Smid, Foreign Trade manager in the PS-Lácteos, who is responsible for commercial promotion of the project.
In 2007, the best year for dairy trade with the Arab countries, Brazil exported US$ 55 million in sector products to Algeria. From 2008 on, however, sales started dropping and, this year, no sales of Brazilian dairy were made to the Algerians.
The Algerian market, however, has been increasing dairy imports. According to information disclosed by the embassy of Algeria in Brasília, from January to May this year, the country imported 128.048 tonnes of dairy, the equivalent to US$ 484.14 million.
Brazilian companies to participate in the delegation to Algeria are from companies Itambé, Mococa and Tirolez. According to Smid, Tirolez has already made contact with Algerian companies, while Itambé is getting involved in cultural activities with the embassy of Algeria in Brasília “to increase visibility, come closer to the country and generate business”.
The agenda for the businessmen also includes meetings with the embassy of Brazil in Algiers, with the National Interpersonal Office of Milk and Dairy Products (Onil), with the Algerian customs, the Ministry of Trade and the Ministry of Agriculture and Rural Development.
According to Smid, one of the main engagements of the programme in Algeria is the meeting at Onil. “It is the main governmental buyer of dairy, responsible for tenders in the sector. The government of Algeria aims to increase its purchase and production,” he said. “The country has a technology deficit for dairy storage and needs to import the products,” explained the executive.
A report disclosed by the embassy of Algeria in Brazil shows that “domestic dairy production has even dropped strongly as against the domestic consumer needs”, shows the document.
“We want to check how dairy may become more competitive. The delegation plays a part in prospecting and market analysis. We want to understand how Algeria and Brazil can improve their dairy exports to the country,” pointed out Smid.
Apart from exports, the possibility of installation of Brazilian companies in Algeria should also be discussed. “The government of Algeria is greatly interested in foreign companies setting up offices in the country. The (Swiss) Nestlé recently set up an office in Algeria,” explained the manager at PS-Lácteos. “This possibility should not be discarded. Companies must consider all possibilities,” he said.
The Brazilians should also meet with Algerian countries, among them distributors, large supermarket chains and agro-food sector companies.
The delegation to Algeria has the support of the Foreign Ministry of Brazil, of the Arab Brazilian Chamber, of the embassy of Algeria in Brazil and of the Algerian Chamber of Commerce.
*Translated by Mark Ament
