São Paulo – The delegation of Saudi businessmen currently in São Paulo, headed by the Saudi minister of Agriculture, Fahad Abdulrahman Bal Ghunaim, intends to return to Brazil in order to get to know the farms and production lines of local food companies. "I am certain that the businessmen will return to Brazil to contact the companies. This mission was just the beginning," the minister told ANBA. The group’s activities in the country began on Monday (4th) and should end on Wednesday (6th).
The main goal of the Saudi mission to Brazil, according to Ghunaim, was becoming familiar with investment opportunities in the agricultural sector. The minister claimed that there are many ways of investing in the sector in Brazil, such as by establishing joint ventures and partnerships, establishing new companies with Saudi capital, investing in agricultural machinery and equipment and in logistical infrastructure, and purchasing land. "The important thing is to increase global food production," the minister added.
According to him, there already are Brazilian enterprises investing in logistics and food distribution in Saudi Arabia, especially poultry and sugar. "Saudi Arabia is a major hub for Brazilian companies to have access to other markets," said Ghunaim.
The general manager of company Saudi Agricultural Development (INMA), Hassan Mustafa Al-Shehri, stated that the trip to Brazil was very good, and that he did not imagine the country’s potential in beef and poultry production. "After this visit, we want to look into investment opportunities in this sector," said Shehri.
The INMA is one of the leading agricultural enterprises in Saudi Arabia. The company manufactures and sells grain (wheat and seeds), animal feed and greenhouse vegetables. According to the general manager, the bulk of vegetable farming in the country is done in greenhouses, because the weather and the shortage of water make it difficult to grow plants outdoors.
In order to talk to Brazilian companies, the Saudi businessmen met this Tuesday at the Arab Brazilian Chamber of Commerce. Attending enterprises included beef companies Minerva and JBS, and trading companies Daros Br, Café Norte and Alliance, which sell coffee, meats, dairy etc.
Meat
The Saudi delegation also met this Tuesday morning with the presidents of the Brazilian Beef Export Industries Association (Abiec), Antônio Jorge Camardelli, and Brazilian Poultry Union (Ubabef), Francisco Turra. According to the International Agribusiness Promotion director of the Brazilian Ministry of Agriculture, Livestock and Supply, Eduardo Sampaio, the Saudis expressed interest, for instance, in increasing the Brazilian meat production capacity, in industrial sanitary inspection, and in vaccines for animals. They also wanted information on goat and sheep breeding.
At the meeting, the Ubabef presented data pertaining to trade with Saudi Arabia and informed that Brazil is a global leading in international poultry trade, as well as the world’s leading exporter of Halal chicken meat, having sold 1.6 million tonnes shipped and revenues of US$ 2.3 billion in 2009. Saudi Arabia is the leading target of Brazilian chicken shipments, and accounts for 14% of the total.
After visiting the organizations, the Arab Brazilian Chamber offered luncheon to the Saudi delegation. On the occasion, the president of the Arab Brazilian Chamber, Salim Taufic Schahin, claimed that the organization is ready to help businessmen find partners in the Brazilian agricultural industry.
The delegation will leave to Uruguay on Wednesday and then on to Argentina, where it should also look into investment opportunities in agriculture. According to the Saudi minister, relations between Mercosur countries and Arab nations are great, and the outlook for investment is good.
*Translated by Gabriel Pomerancblum
