São Paulo – The Minerva beef company is betting on the increase of its sales to the Arab market, which is already among the group’s leading export targets. One of the strategies is to open up new markets in the region, and the company has already begun working to that end. From September 15th to 18th, Minerva took part in a trade mission to Algeria and Oman, organized by the Brazilian Ministry of Development, Industry and Foreign Trade.
"Our participation [in the mission] was very good because we got to know the Omani market better. There, we met with the minister of Agriculture [Salim Bin Hilal Al Khalili], who is very favourable to increasing the country’s partnership with Brazil in the agribusiness industry," says Fernando Galletti de Queiroz, the president of Minerva. "[Oman] is a very promising country that plans on investing heavily in tourism in coming years. Thus far, however, it has been under-tapped by our beef industry," says Queiroz.
In Algeria, which is one of the leading destinations for Brazilian beef among Arab countries, Minerva organized a promotional barbecue at the Brazilian Embassy, in the capital Algiers, to advertise the quality of Brazilian beef among Algerians even further. "The barbecue was a success, it was widely praised by the 400-plus guests in attendance," he claims.
Brazilian beef is truly much appreciated in Algeria. In 2009 and 2010, the country ranked among the leading Arab importers of Brazilian beef, and Minerva was one of the main exporters to the region, as well as the top exporter to Algeria.
According to Queiroz, the latest trip enabled new opportunities in Algeria to be assessed and competitiveness to be maintained even in the face of market setbacks. "The Algerian authorities have recently authorized imports of Indian beef to the country, and we felt that it was the right time for taking a close look at how the market is reacting to this measure, so that we may define our strategy," he explains.
According to him, Algeria is a market in which the partnership has been crucial to Minerva, which is managing to hold a significant market share with its current partners. "Establishing and strengthening old partnerships was our focus during the trip," he says.
Queiroz also stated that the Middle East has been very relevant to Minerva ever since the group first started exporting. Presently, the company has offices in various Arab countries, such as Lebanon (Beirut), Saudi Arabia (Jeddah) and Algeria (Algiers).
Besides, Minerva has recently launched its Minerva-Halal project in Iran, which is not an Arab country, but is located in the Middle East. The project covers all of the Arab countries in which the Brazilian beef company operates. "The project aims to promote the Minerva group’s quality stamp and its commitment to Halal slaughter, an Islamic ritual slaughter required by all countries in the region," says Queiroz.
Minerva currently exports to 14 Arab countries. Lebanon, Saudi Arabia, Algeria, Egypt, Libya, Tunisia, the United Arab Emirates, Kuwait, Qatar, Oman, Bahrain, Jordan, Iraq and Palestine import mostly raw, boneless, frozen beef. "Our strategy is to always be as close to our clients as possible, to be familiar with their problems and see the opportunities, using the knowledge gathered over our 15-plus years of market experience to establish new partnerships, always seeking the highest profitability," claims the president.
Minerva exports to more than 80 different countries, which helps in spreading the market risk. "Right now, however, the Middle East surely holds a very significant share – the region accounted for nearly 40% of the total volume shipped in the second quarter of 2010," says Queiroz.
The beef company posted gross consolidated revenues of 920.2 million Brazilian reals (US$ 537.5 million) in the second quarter of 2010, its all-time record. The figure represents growth of 35% compared with the second quarter of 2009. Exports accounted for 655 million reals (US$ 382.5 million), or 71.2%.
In order to guarantee its contact with importers, the company takes part in leading international food industry fairs every year, including Gulfood, considered Middle East’s largest, World Food, in Moscow, and European fairs Sial, in France, and Anuga, in Germany, which are held every two years.
About Minerva
Headquartered in the city of Barretos, in the North of the state of São Paulo, the Minerva group comprises seven industrial complexes. Minerva is one of the leading companies in manufacture and sale of raw beef, processed products and by-products of bovine origin, with a daily slaughtering capacity of 9,300 heads of cattle.
The company also operates in the food services segment by means of its Minerva Dawn Farms (MDF) joint venture, which currently has a production capacity of 10 to 15 tonnes of processed meat/hour, and produces foodstuffs made from beef, pork and poultry. The group has approximately 9,000 direct employees.
Contact
Telephone: (+ 55 17) 3321.3355
E-mail: minerva@minerva.ind.br
Site: www.minerva.ind.br
*Translated by Gabriel Pomerancblum