São Paulo – The São Paulo branch of the Brazilian Micro and Small Business Support Service (Sebrae) is fostering closer ties with Arab fertilizer suppliers to help Brazil face the crisis in the sector. The president of Sebrae-SP, Tirso Meirelles (pictured above), had a meeting last week with exporters in the sector in Dubai, in the United Arab Emirates, and is in talks for them to visit Brazil. The meeting had the support of the Arab Brazilian Chamber of Commerce (ABCC) office in Dubai, where it took place.
Fertilizer prices have spiked this year due to the war between Russia and Ukraine, and countries are concerned about a looming supply crisis. The Russians are important world exporters of fertilizers, an essential input to maintain current crop productivity levels and, consequently, volumes of produced food. In addition to supplying its domestic market, Brazil provides essential foods to other countries.
“What we noticed, which was very interesting, is the feasibility of other sources for importing fertilizers that do not necessarily go through those places in conflict,” said Meirelles in an interview with ANBA. The goal of the meeting was to assess current opportunities in imports. “We managed to raise awareness among exporters. We are scheduling meetings here in Brazil,” said the president of Sebrae-SP about a possible trip by the Arabs to follow up on the discussions.
Meirelles says from the first contact; he realized there are conditions for importing products from other places, and there is speculation currently in the fertilizer market. According to him, it is necessary to seek alternatives so the farmer’s production cost, including the medium and small properties, does not rise too much. “If they are not able to purchase (fertilizers), they will not buy, so productivity drops a lot, profitability drops a lot, and their permanence in agribusiness drops a lot,” he said.
The Arab suppliers with whom the president of Sebrae-SP spoke were food importers and expressed the need to buy sugar, soybean, barley, wheat, and maize from Brazil. Meirelles says he is in talks with the Brazilian National Confederation of Agriculture (CNA), mills, and cooperatives to help.
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Despite being best known for its work with industry, commerce, and services, Sebrae also works in agriculture and livestock, supporting rural businesses. “To have macroeconomic feasibility in our country, we have to work on the production chain. If we have a strong production chain, industry, commerce, services, and agribusiness, we can provide sustainability for medium-term and long-term development. This is the work Sebrae does,” he explained to ANBA.
Meirelles sees the fertilizer issue within a larger context of global concern about food security. “Food inflation rates have increased too much worldwide,” he said, noting a reduction in global food supplies and an increase in malnutrition and hunger. In Brazil, he senses a positive plan to solve the issue of fertilizers and food supply, which includes the use of organic fertilizers, guidelines for the rationalized use of fertilizers, and the search for new international suppliers, such as Egypt, Morocco, and Panama.
At the UAE
The Sebrae-SP meeting with Arab exporters in Dubai was attended by the director of the ABCC’s office in the emirate, Rafael Solimeo, and the International Business executive, Noury Dweidary. Meirelles, who conducted the meeting, is also vice president of the Agriculture and Livestock Federation of the State of São Paulo (Faesp).
The Sebrae-SP president’s trip to the UAE took place from March 19 to 26 and included other appointments, such as participation in the 1st Virada Feminina Forum, which took place at Expo 2020 Dubai and discussed women’s entrepreneurship, talks on opportunities for Brazilian startups with Abu Dhabi Global Marketing (ADGM), and also participation at the Global Business Forum Latin America.
Translated by Elúsio Brasileiro
