February 16, 2012

Brazil's dairy exports to Middle East rise in January

Brazil exported US$986,000 worth of dairy products to the Middle East in January, up 34% over the same period last year, said the Ministry of Development, Industry and Foreign Trade.

The value represented 20% of Brazil's total exports of milk and dairy products in the month, which amounted to approximately US$5 million. The volume was stable against January 2011.

However, the country imported US$75.2 million worth of dairy products, generating a deficit of US$70.2 million in the trade balance in the sector. Imports rose 46.2% over January 2011, according to Ministry figures disclosed by consultancy company Scot Consultoria.

To the Arab market, Brazil exported items like cream and butter oil. The buyers were the United Arab Emirates, in first place, with US$287,600, Algeria, in second, with US$209,000, Saudi Arabia, with US$127,900, in third place, Oman, with US$112,000, in fourth, and Kuwait, with US$87,000, in fifth place.

Last year, milk collection in the main Brazilian producer states dropped 2.2% over the previous year, according to a study disclosed by Centre for Studies in Applied Economics (Cepea). The reduction meant 500 million less litres of milk. Producers were unmotivated due to the high production cost.