São Paulo – Brazilian exports to the Arab world grew 4% in February over the same month in 2011, according to figures disclosed by the Ministry of Development, Industry and Foreign Trade, and compiled by the Arab Brazilian Chamber of Commerce. In the second month of this year, revenues with sales to the Arab nations totalled US$ 970.5 million, as against US$ 930.1 million in the same month last year, or US$ 40 million more.
In the accumulated result for the first two months of the year, exports to the Arab world totalled US$ 2.055 billion. There was growth of 1.86% over the US$ 2.017 billion in revenues in the same period in 2011. “There was growth in exports of sugar and meats, but 18% reduction in ore and 44% in grain,” said the Business and Market manager at the Arab Brazilian Chamber, Rodrigo Solano. He also pointed out the 9% advance in sales of machinery to the region.
Revenues with sugar exports, the main product in the basket, totalled US$ 652 million, over one quarter of the result for the two-month period, with growth of 36%. Sales of meats totalled US$ 565 million, also more than one quarter of the total, expansion of 13%. Iron ore sales reached US$ 334.5 million and those of grain, US$ 150 million. The main reason for the drop in grain exports was wheat and maize, according to Solano. Brazil also exported products like coffee, tobacco, dairy, wood and chemical products, at lower volumes.
The Business and Market manager at the Arab Brazilian Chamber said that the performance in the first two months was good, but could have been better. He recalls that the Brazilian export basket to the region is still much focussed on commodities and that that has not changed for decades. With a significant market, said Solano, domestic industries end up turning their products to local consumption and cannot reach the diversity that the foreign markets require.
But the Arab nations are a good market to explore, said Solano, recalling that the region has per capita consumption above the global average in several sectors. To enter the market, however, he said, it is necessary to have access to information, to seek opportunities and to be present in promotional actions in the region, among other measures.
In the accumulated result for the year, the Arab country that purchased most from Brazil was Saudi Arabia, with US$ 429 million and reduction of 5% over the first quarter in 2011, followed by Egypt, with US$ 327 million and expansion of 16%, the Emirates, with US$ 318.5 million and growth of 28%, Algeria, with US$ 155 million and reduction of 28%, and Morocco, with US$ 140 million and 4.7% less. In the period, there were purchases from 21 Arab nations.
Brazilian imports from the Arab world reached US$ 1.2 billion in the first quarter of the year, with growth of 7.29% over the same period in 2011. The main suppliers were Saudi Arabia and Algeria, already traditional in sales to Brazil, and the main products were fossil fuels and fertilizers.
*Translated by Mark Ament