São Paulo – The Middle East was the second largest destination for the exports of Brazilian beef company Minerva year-over-year ended in September of this year. In the previous twelve months, the region went from having a 19% share to a 20% share between October 2015 and September 2016, according to data made available this Wednesday (6) by the company. The countries that most increased their purchases from the company were Iraq and the United Arab Emirates.
In the balance report made public, when mentioning the exports decline to Africa and the Commonwealth of Independent States (CIS), with Russia the leading country, the company explained that part of the exports were redirected to other countries that are consumers of forequarters, among them those in the Middle East.
Overall, Minerva’s export revenues went up 6.9% year-over-year ended in September, from BRL 6.4 billion (USD 1.99 billion) to BRL 6.8 billion (USD 2.12 billion). But in Q3, foreign sales declined 14% from BRL 1.8 billion (USD 562 million) from July to September of last year to BRL 1.6 billion (USD 499 million) in the same months of 2016.
The company explained that the 8.3% dollar devaluation against the real in Q3 of this year over the same period of 2015 impacted exports profitability of the beef department, but that it was offset by 6.3% increase in the average price in dollar of beef in the same comparison. With this, average prices in reais remained practically stable in comparison to Q3 of last year, reported Minerva.
The company mentioned the opening of the North American market for the Brazilian beef early in September. “This factor should reflect in the access to new markets and consequently will lend a greater pricing power to the Brazilian industry in the global market in the medium term,” said the company’s CEO, Fernando Galletti de Queiroz in a statement.
The CEO also pointed out that the Australian remains with a lower beef supply due to above average number of slaughters in drought periods and confinement of female animals for herd reconstitution. According to him, these two factors together have benefited South America in accessing new markets and consequently the better positioned players.
Asia was the region in the world that most bought from Minerva year-over-year ended in September with 28% of the total. The region’s share previously was 22%. The Middle East was the second largest market, followed by Africa, with 15%, and the Americas and the European Union, both with 14%, CIS, with 5%, and NAFTA with 4%.
Minerva’s gross revenues stood at BRL 10.4 billion (USD 3.24 billion) year-over-year, a 10.2% increase over the previously period. It went up 7.4% in Q3 of this year over the same months of last year to BRL 2.6 billion (USD 812 million). Sales volume and slaughters declined year-over-year but increase in Q3.
Early in November Minerva signed an agreement to acquire shares of Frisa Frigorífico Rio Doce S.A., Brazil’s sixth largest beef exporter. Saudi company Salic has a stake in Minerva. In addition to its plants in Brazil, the company also has plants abroad, in Paraguay, Uruguay and Colombia.
*Translated by Sérgio Kakitani
