Marina Sarruf*
São Paulo – The government of Egypt has extended the liberation of imports of frozen chicken meat up to the month of March. With this, Brazilian exports of the product are gaining more and more space in the Arab country. From September to December last year, Brazil shipped 48,890 tonnes of chicken to Egypt, representing exports of US$ 53.5 million. Imports of the product were liberated by the government of the Arab country in July 2006.
"If Brazilian companies can make use of this opportunity, it will be very good as we may win a new market for Brazilian chicken," stated the president of the Arab Brazilian Chamber of Commerce, Antonio Sarkis Jr.
The government of Egypt had liberated imports of frozen chicken, fresh eggs and powdered milk and eggs for six months, and had eliminated the import tariffs on the product as well as on frozen cattle beef and fish. With the new resolution, all of these products and yellow maize, maize jelly, soy oil cake, additives for animal feed, calcium phosphates and meat and bone powder continue free of tariffs.
According to Sarkis, the extension is also going to help Brazilian chicken to become better known among the Egyptian consumers. "I believe that if these extensions continue, Brazil will already be inserted in the Egyptian market," he said. Before the liberation of chicken imports, the price of chicken on the Egyptian market had a sudden surge, caused by the prohibition of local chicken farming due to avian flue, which even caused deaths in the country.
According to the commercial consul of Egypt in São Paulo, Mohamed Bakry, Brazil has great chances of proceeding with chicken exports to the Arab country if the extensions continue. "Brazil is the main Egyptian supplier of chicken meat and most of the Brazilian slaughter houses are capable of selling halal meat," he said. With regard to the other products, Bakry also said that Brazil has good chances of exporting, "it all depends on the price and the quality."
To the consul, Brazil also needs to be aware of the trade balance with the Arab country. Last year, Brazilian exports to Egypt totalled US$ 1.34 billion, representing an increase of 55.4% when compared to 2005. Brazilian imports from Egypt, in turn, totalled US$ 37.7 million in 2006, against US$ 31 million in the previous year. "The trade balance must be level, it is necessary to be careful," said Bakry.
Products
The main Brazilian products shipped to Egypt last year were cattle beef, sugar, iron ore, alumina, chassis for vehicles and chicken. The main imports from the Arab country, in turn, were naphtha for the petrochemical industry, cotton, carbon and leather.
*Translated by Mark Ament
