São Paulo – Attracting foreign investment into Brazilian agribusiness is one of the 2011 goals for the Brazilian Ministry of Agriculture, Livestock and Supply. The list of countries with the highest potential potential is topped by Middle Eastern and Far Eastern nations. Why? Because in addition to having funds available, food security policies, i.e., supplying their populations, is a priority for them. In the Arab world, the highlights of this scenario are Saudi Arabia and the United Arab Emirates. Here in Brazil, foreigners may invest mainly in crops such as grain and in the dairy industry, among other possibilities.
"Brazil plays a relevant role to the food security of Middle Eastern and Far Eastern countries," says the foreign investment advisor to the ministry, Maurício Fleury Curado. "Many countries in those regions have low agricultural outputs and need steady partners to provide them with food," he claims.
In that respect, says Curado, demand from those nations is in line with the ministry’s plan of attracting investment into Brazilian agribusiness. "We will establish partnerships so that foreigners may invest more in our country," he says. The funds would be allocated to crops such as grain, the dairy industry, the agroindustry in general, and even infrastructure and logistics.
According to Curado, the idea is to attract investment through proposals submitted by enterprises in each field, to be trained with support from the ministry. "We will promote sectorial forums with Brazilian agribusiness entrepreneurs to prepare the companies and develop opportunities," he asserts. Companies from all over the country will be able to participate, but "naturally they will be better prepared in states in which agriculture is stronger, such as those in the Midwestern and Southern regions," according to the ministry’s advisor.
In order to put the plan to work, the ministry should take part in at least five trade missions abroad in 2011, in places yet to be defined. There should also be meetings with Brazilian businessmen. "In November last year, we attended four seminars with Arab investors in Kuwait, Riyadh, Doha and Abu Dhabi," says Curado.
Brazilian agribusiness products are currently exported to 200 countries. Brazilian beef, for instance, has 142 different international buyers, as against 146 for poultry. From January until November 2010, the industry’s exports to the Arab world reached 7.9 billion Brazilian reals (US$ 4.6 billion), 29% more than in the same period of 2009.
The leading importers of Brazilian agroindustry products from January until November 2010 were Saudi Arabia, Egypt, the Emirates, Algeria and Morocco, in this order. The Saudis alone have imported the equivalent of US$ 2.7 billion, and Egypt, US$ 1.8 billion.
*Translated by Gabriel Pomerancblum
