The Brazilian food company is cleared to ship as many as 5,000 tons of product per month to the Arab country.
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Foreign sales of unprocessed and processed poultry from Brazil grew in February. Increased shipments to Libya stood out.
Foreign sales went down in January as a result of a spike in domestic demand, the Brazilian Animal Protein Association (ABPA) said.
The Saudi Food and Drug Administration temporarily suspended export authorizations for two of the Brazilian food company’s units. However, the company said it will ship product made at other units.
Saudi Food and Drug Authority announced on February 10 a temporary suspension of export authorizations for units in Dois Vizinhos and Francisco Beltrão which account for a combined 20% of all poultry supplied from Brazil to the Arab country.
An outbreak of H5N8 in a Saudi farm was made public this week. According to the Brazilian Animal Protein Association (ABPA), this should not impact exports from Brazil, but sales can be increased if need be.
Overall Brazilian poultry exports were up 15%. The Arabs, though, imported 3.5% less year-on-year.
The Arab country, which had been the biggest buyer for eight years on end, saw China overtake it this year.
Revenue in the month reached USD 537.5 million. Exports grossed 321,900 tons, up 3.1% from a year ago.
Brazilian company that produces famous poultry brands such as Sadia and Perdigão signed a memorandum with Saudi officials to build a plant in the country.
Brazilian-Lebanese businessman Issam Hassan started Massi Trading in Dubai seven years ago to serve as a branch of Brazilian companies in the Arab countries. He trades mainly poultry but is studying new fields and ways to act.
The Brazilian food company is looking into processing product locally in the Arab country, where 60% of the poultry consumed is industrialized. Saudi Arabia is currently not purchasing product processed by BRF in its UAE facilities.
Poultry exports from Brazil dropped 28% to Saudis and 8% to the United Arab Emirates last September. But sales to Egypt and Bahrain soared.
Brazil’s Agriculture minister Tereza Cristina agreed on inspection by Saudi authorities that may lead to a resumption of sales from units that have been off the list since January. She also went over the last details before Brazilian beef sales to Kuwait begin anew.
