Barretos – Middle East and North Africa countries are crucial to the expansion plans of Minerva Foods, a meat packing company based in Barretos, state of São Paulo. At a press conference this Tuesday (20th), the company’s chairman Fernando Galletti de Queiroz said Arab countries have accounted for roughly 35% of the company’s exports in quarter two this year, and that share should go up in years to come.
“The region imports large volumes; it has a growing population and is unable to produce protein (due to climate issues). Besides, 98% of the population are Muslims, and hence do not consume pork. They are a major target for Minerva. Food expenses make up 35% to 45% of families’ budgets. Thus, it is important for governments to keep inflation on foodstuffs at bay. We regard the region with good eyes,” said Queiroz. The company considers as Middle Eastern and North African countries the 22 Arab countries plus Iran and Turkey, which are not Arab.
In quarter two this year, the company posted a net income of R$ 1.4 billion. Of those, R$ 930 million originated from exports, and R$ 470 million came from domestic sales. Minerva Foods has offices in the Arab countries Algeria, Lebanon and Saudi Arabia. There is also an office in Iran.
Conjuncture
Minerva is also planning to expand in markets other than the Arab one. It should soon set up two offices in Asia and boost sales to emerging countries, the ones in which sales grow the most. Out of total meat exports from Brazil in quarter two, 25.6% went to Russia; 20.2% to Hong Kong; 10.9% to Venezuela; 9.1% to Egypt; 7.7%, to Chile; 3.8% to Iran. The remaining markets combined imported 22.8% of Brazil’s output.
With regard to Brazilian production and consumption, the head of research at Minerva, Fabiano Tito Rosa, said the country’s role as the world’s leading exporter of beef should become even more prominent due to factors such as increased productivity and declining output from leading producing countries like the United States. Brazilian exports were up 559.7% from 1997 to 2012. The average global export increase was 39.6%. In July, Brazil shipped out 105,000 tonnes of beef, and sales are expected to reach 106,000 tonnes in August.
Other goals
Rosa said exports are one of the company’s goals. He said, however, that the company plans on expanding its presence at small and medium-sized retail businesses in Brazil through the Food Service sector, i.e. supplying to restaurants and fast food chains, among others. Sales in the segment increased 131.5% in quarter two 2013 from quarter two 2012.
*The reporter has travelled by invitation of Minerva Foods. Translated by Gabriel Pomerancblum
