S\u00e3o Paulo \u2013 After a eight-year spell as the leading importer of poultry from Brazil, Saudi Arabia was outdone by China, as a result of an undersupply in Asian countries caused by a swine disease outbreak. Saudi imports from Brazil amounted to 429,000 tons through November 2019, down 1% from a year ago. China imported 513,000 tons, up 28%.<\/p>\n
The fourth biggest importer of poultry items from Brazil was the UAE at 316,000 tons, up 12%, with the country en route to become a distribution hub for the Gulf area. Brazil\u2019s BRF, the parent company for brands Sadia and Perdig\u00e3o, owns a plant in Abu Dhabi, UAE. Kuwait ranked ninth with imports down 7% to 104,000 tons.<\/p>\n
Exports to the Middle East as a whole, however, went from 33.2% of total sales through November 2018 to 34.5% through November this year. Asia\u2019s share increased further, from 34.3% to 37.2%.<\/p>\n
During a press conference this Thursday (12), Brazilian Animal Protein Association (ABPA<\/a>)\u00a0chairman Francisco Turra said Asia\u2019s 37% market share is \u201ca giant step\u201d for Brazil.<\/p>\n \u201cSaudi Arabia led poultry exports for eight years straight. This year saw it lose space to China, the runaway leader. The new fact for us was this very aggressive move by China, which so far has taken in 14% of our exports year-to-date. Saudi Arabia\u2019s imports decreased somewhat. They had a bit of a scare early into the year as they visited plants, created problems and claimed they were manufacturing domestically, but when they found that China was buying massive amounts, they came in strong and tried, but lost, because besides buying in big quantities, China paid well,\u201d he explained. However, BRF said in late October that it also plans on opening a plant in Saudi Arabia<\/a>.<\/p>\n The Arab market<\/strong><\/p>\n ABPA Markets director and chairman-to-be \u2013 his term begins in April 2020 \u2013 Ricardo Santin (pictured,<\/em> on the microphone<\/em>) said Brazil remains the world\u2019s biggest producer and exporter of halal meat \u2013 i.e. meat fit for consumption by Muslims. \u201cOur market position is still comfortable. You have Saudi Arabia, whose imports declined earlier on but are stabilizing. This year they decreased by only 4,000 tons, so you no longer have a reduction you had in the past in the number of plants allowed to sell. This goes to show that the halal market is stable and that it can grow,\u201d he said.<\/p>\n But Arab countries will likely experience repercussions from the crisis in China, because some of the product that usually ships to the Middle East might ship to China instead. \u201cFor example, China began to buy chicken breast, which it had never done before. They began in October, and that chicken breast is going to come from markets that used to supply Mexico, Europe and the Middle East. These markets might see a decline in supplies, which their domestic industries may cover, or else there might not be enough product to go around,\u201d said Santin.<\/p>\n According to the director, the Arab market remains the biggest destination for Brazilian poultry. \u201cAnd it will remain thus. Of course, the whole disruption which China is causing in every market around the world means the halal market will also be impacted. If China begins buying whole chickens, for instance, there\u2019ll be consequences to that. It\u2019s too early to tell, but [relations with Arab countries) are still vital to us. The halal market is still one of Brazil\u2019s biggest clients,\u201d he said.<\/p>\n Some of the poultry products that used to ship to Saudi Arabia up until 2018 is now shipping to other markets, like thet UAE, Yemen, Qatar, Iraq, Oman and Bahrain, as well as less relevant markets like Afghanistan, whose imports have doubled this year according to the ABPA.<\/p>\n Forecasts<\/strong><\/p>\n Turra expects sales to the Arab market to remain flat and possibly increase in 2020. \u201cWe haven\u2019t made any estimates, but it\u2019s a that\u2019s already loyalized,\u201d he said.<\/p>\n according to Santin, the association hasn\u2019t made projections regarding importing countries next year, but the bloc of 22 Arab countries remains Brazil\u2019s biggest client apart from the domestic market. \u201cWe\u2019d like to see sales [to Arab countries] increase along with global consumption and the shift in consumption that the crisis in Asia will bring about, but we\u2019re working under the assumption that sales will at least remain level. If China starts buying more and more, that will not take away from the relevance of Arab countries. Look, China has a long way to go before it starts buying equal amounts of halal meat,\u201d he said.<\/p>\n Overall numbers<\/strong><\/p>\n Poultry exports from Brazil year-to-date through November were up 2% to 3.822 million tons shipped. Revenue was up 6.1% to USD 6.358 billion. Whole-year sales are expected to 4.2 million tons, up 2.4% from 2018.<\/p>\n Poultry production is seen going up 2.3% to 13.15 million tons this year, with per capita consumption expected to climb 2.2% to 42.6 kg.<\/p>\n Eggs<\/strong><\/p>\n Egg exports from Brazil are expected to be down 30% to 8,000 tons as a result of rising domestic consumption. \u201cThere\u2019s not much left to export,\u201d said Turra. The UAE are the biggest importer of Brazilian eggs. Through November, the country took in 4,046 tons, down 28% from a year ago. Bahrain ranked sixth at 236 tons, up 32%, and Saudi Arabia was seventh at 220 tons, down 43%.<\/p>\n Poultry genetics<\/strong><\/p>\n Hatching egg exports were down 13% in volume and 8.5% in revenue year-on-year through November, to 11,960 tons and USD 51.72 million. Day-old chick exports slid 5.4% in volume to 953 tons, while revenue was up 7.6% to USD 74.81 million. The biggest markets for Brazilian poultry genetics were Senegal and Paraguay. Saudi Arabia came in third at 2,004 tons imported, up 1% year-on-year. The UAE ranked fifth, with imports down 24% to 1,439 tons.<\/p>\n Translated by Gabriel Pomerancblum<\/strong><\/p>\n