São Paulo – Brazilian medical, hospital and dentistry sector exports totalled US$ 581 million last year, which represented growth of 10% when compared to 2007. Despite the growth, foreign sales were some US$ 20 million below expectations by the Brazilian Association of the Industry of Medical, Dental, Hospital and Laboratory Articles and Equipment (Abimo).
According to the president at the organisation, Franco Pallamolla, in an article disclosed by Abimo, estimates were not exceeded because real/dollar exchange rates were not favourable to foreign trade. The weaker American dollar up to September caused companies, mainly small and medium ones, to become less competitive due to hardships in price maintenance. "The sector also faced the deceleration of the global economy in the last quarter of 2008. With the announcement of the crisis, the market postponed some acquisitions and investment," recalled Pallamolla.
The main destinations for sector products were the United States, Argentina and Venezuela, which together answered to 40% of exports. With regard to the sectors most shipped, they were Radiology, with 30.8%, followed by Laboratory, 27.3%, Consumer Material, 10.7%, and Medical and Hospital Implants, 4.3%, according to figures supplied by the Industrial Marketing and Studies Institute (Iemi).
The Dentistry area reduced exports by 0.4%. However, the sector ended the year of 2008 with a trade balance surplus of US$ 38 million, with sales of US$ 82 million and imports of US$ 44 million.
To pulverize the business in 2009, the sector is getting ready to advance even further in Asia and Africa. As homework, the companies will have to invest in technological innovation and certification. Abimo should begin a series of activities to grant support to the companies, among them the organization of a seminar about the Chinese market. The Brazilian Export and Investment Promotion Agency (Apex-Brasil) should also inaugurate an office in China. With this work, the sector hopes to reach at least US$ 600 million in exports this year.
Imports
Brazilian imports in the medical, hospital and dentistry sector generated US$ 2.7 billion, which represents growth of 26% over 2007. This sector trade balance deficit was US$ 2.1 billion. The main Brazilian suppliers were the United States, Germany, Japan and China.
*Translated by Mark Ament