São Paulo – The meat packing company Minerva Foods is preparing to start selling beef to Morocco, a destination they have not exported to yet. The company’s chairman, Fernando Galletti de Queiroz, said this Wednesday (10th) in a luncheon offered by the company to journalists, in São Paulo, that the share of emerging markets in Minerva’s revenue is growing and, along with it, the presence of Arab countries. The company did not reveal when it plans to start exporting to Morocco.
“Morocco is highly relevant and we are working on this market. Nigeria has quite a large population and we can grow in Algeria (where the company is already operating). Iraq is starting to have a greater stability and demand. There is much to be done,” said Galletti. Iraq, however, has faced political turmoil for the past few months due to operations of the extremist group Islamic State of Iraq and the Levant (Isil).
In Q2 this year, the company grossed US$ 772.65 million (or R$ 1.759 billion). Foreign sales account for 67.7% of this total. Sales to African countries account for 17% of export revenues. In Q2 2013, sales to Africa accounted for 15% of total exports. The Middle East’s share in sales grew from 18% in Q2 2013 to 20% in Q2 this year.
The leading markets for the company in the Middle East and North Africa include Iran, Israel, Lebanon, United Arab Emirates, Algeria, Libya and Egypt. Iran and Israel are not Arab countries. Sales to Egypt are growing and, as per the company’s prospects, may expand even further in the next months due to Egypt’s lifting the embargo on beef exports from the Brazilian state of Mato Grosso. In late 2013, Minerva Foods announced the purchase of two plants from BRF in Mato Grosso, and should start operating the two units in October.
“(The lifting of the embargo) is another opportunity to sell and this is beneficial. Egypt is always ranked among our top five or six leading markets and it will be very good to be able to export to them from Mato Grosso,” said Galletti. Egypt announced the embargo on beef from Mato Grosso in May after Brazil’s announcement that the causative agent of mad cow disease had been detected in an animal in the state. The animal died of old age and not due to contamination. Brazil’s risk status for the disease remains negligible according to the World Animal Health Organisation (OIE). In August, a Brazilian mission headed by the Agriculture minister, Neri Geller, visited Egypt and the embargo was lifted.
More exports
Minerva’s chairman also said Arab and Muslim countries are becoming “major [trade] partners” and there are markets to be opened.
In addition to Arab, African and Muslim countries, Minerva already noted an increase in demand for beef in Russia. As a result of the conflict in Ukraine, European countries, the United States and Australia imposed trade sanctions against Russia. In turn, Russia stopped purchasing beef from these countries, which has led to increased demand for the product in countries that have not taken measures against Moscow. The company’s expectation is that sales to Russia should increase as of this month.
*Translated by Rodrigo Mendonça
