São Paulo – One month of fasting during daytime, followed by get-togethers and communal meals after sunset. This is the year 1440 in the Muslim calendar, and we are in Ramadan – a month that also impacts the calendar of trade for Arab countries. During this time of year, nightly feasts begin with the breaking of the fast (Iftar). Family and friends will get together for a banquet that usually starts off with dates.
These get-togethers and the tradition of donating food to the poor are what impacts food trade and imports. “Logically, in the months that precede Ramadan, sales will increase. Consumption goes up and so does stockpile-building. People will stock more to cater to the demand, because these countries get lots of tourists, as well as expatriates who come back to celebrate,” said Mohamed Hussein El Zoghbi, president of the Federation of Muslim Associations in Brazil (Fambras), speaking to ANBA.
And what are the impacts of Ramadan in Brazil’s food industry? “Contracts [with Arab countries] are secured at least three months ahead of time, because besides production, you have shipping and storage. And anything you purchase takes a while to reach its destination. Purchases begin to level off during the Ramadan month. Exports, you’ll see them [go up] in the few months leading into it, surely,” Zoghbi.
Apart from nighttime feasting, the stockpiling also stems from the fact that commercial activity, which often takes place during the day, is reduced during Ramadan. Products whose demand is strongest include some that are massively produced in Brazil, like poultry, beef and soy. Sales of processed items like soups and juices also climb during this time of year. Arab date farmers step up their output.
From Brazil to Arab countries
Ramadan began on May 5 this year, and food production in Brazil began picking up in March, to 1.05 million tons, from 963,000 tons in February. The trend continues up until April, which precedes the celebration.
One of the biggest markets for poultry from Brazil, the Arab countries as a whole buy more during this period. Year-on-year in April, poultry sales to Arab countries climbed 34.9% to 338,900 tons, according to the Brazilian Animal Protein Association (ABPA).
Beef and soy exports also went up. According to figures from the Arab Brazilian Chamber of Commerce’s Market Intelligence Department, beef exports climbed 107% year-on-year in April to 24,450 tons. Soy sales were up 58.34% to 116,000 tons.
Also year-on-year in April, total food exports were up 46.13% to 926,250 tons. Although this can change from year to year, Zoghbi explains that the natural upward trend always holds true. “The market is consistent. It’s a very important market for Brazil. It’s always seasonal, and around this time of year, sales will go up two months ahead of time. During the actual month of Ramadan, exports will go down a bit because the stockpiles are in place,” he said.
From Arabs to Muslims
For the Arab companies, Ramadan is a period that guides the business calendar. The Tunisian company Jardins de Carthage, for example, points a growth two months before Ramadan. “We sell more, specially in Europe, which has larger Muslim communities coming from countries such as Algeria and Tunisia itself,” revealed Foued Gueddich, manager general of the group that sells jams and pepper and tomato sauces.
One of the biggest markets for poultry from Brazil, the Arab countries as a whole buy more during this period. Year-on-year in April, poultry sales to Arab countries climbed 34.9% to 338,900 tons, according to the Brazilian Animal Protein Association (ABPA).
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Also focused in industrial products market, canned goods brand Cortas Food, based in Lebanon, sees its largest sales volume around Ramadan. “I would say that 70% of our sales of the year are concentrated in the months before Ramadan and the month after that,” said logistics head Jacques Hamati. Cortas sells beans, fruits and rose syrups, sesame seed, olive and other oils, and pickles, and according to Hamati, demand for these items increase.
The Tunisian company Huilerie Loued sees is olive oil demand start to increase three months before Ramadan. “The entire market sees this increase. Of course, it depends of the product, but in general products such as eggs, beef, fish, poultry, dates and milk sell more,” stressed CEO Abdessalem Loued. In his sector, however, sales have the most significant increase – 15-20% – around 15 days before Ramadan.
Also from Tunisia, Bra International Trade works with dates and sees a considerable increase in its sales during this period. “Around three months before demand starts to hike, and 45 days before our exports increase by 35-40%,” explained executive Ameur Bra. According to him and his wife Manel Tayechi Bra, the company’s sales executive manager, the Muslim are the countries that buy most fresh dates, those that don’t go through any process to reach the consumer. Out of the markets that demand the most products are countries with high Muslim population such as Bangladesh and India. The movement before, during and after Ramadan influences not only this period but the whole Arab trade calendar. “We spend the whole year preparing for Ramadan,” concluded Ameur Bra.
Translated by Gabriel Pomerancblum & Guilherme Miranda
