May 27, 2008

Brazil's dairy exports soar by 133 percent

Brazil's dairy exports to the Arab states have escalated by 133 percent to US$41.6 billion in the first four months of 2008, the Ministry of Agriculture Livestock and Food Supply reported.

The largest buyer was Sudan and the product most sold was powdered milk.

Brazilian dairy sales rose from US$17.8 million between January and April last year to US$41.6 million in the same period this year.

Rodrigo Alvim, president of the National Commission of Dairy Farming at the National Confederation of Agriculture and Livestock (CNA), said that apart from the export effort by companies in the sector, the growth is also due to greater consumption in the region.

Michel Alaby, secretary general at the Arab Brazilian Chamber of Commerce, stated that the increase was also due to the competitiveness of Brazilian production.

Alaby added that last year, the country posted revenues of around US$300 million with sector exports, almost double the total for 2007.

Venezuela was the main buyer, followed by Algeria. In the first four months of this year, national exports reached US$152 million.

Alvim and Alaby believe that the increase of sales of dairy products to the Arab countries is also due to the replacement of EU suppliers.

Alvim explained that Europe, which had 36 percent of the global dairy product market in 2006, currently has 22 percent.