December 12, 2007

Brazil to tap more of Middle East beef market

Brazil will try to seize more of the Middle East beef market as its US$4.1 billion worth of exports as of November is likely to fall short of its target at US$4.45 billion by the end year, according to Brazilian Beef Industry and Exporters Association (Abiec).

Abiec president Pratini de Moraes, the Arab market only caters to 17 percent of Brazilian beef exports, losing only to Russia (27 percent) and the European Union (19 percent).

Brazilian beef exports generated US$4.1 billion between January and November this year, posting an increase of 13.85 percent as against the same period last year.

According to Pratini, Middle East markets like the United Arab Emirates and Qatar, are starting to import nobler meats, as is the case with the European Union. However, Brazil is exporting greater added value products which jacked up export prices of Brazilian beef by 12.6 percent this year. Pratini said that volume shipped has grown less than revenues, totalling 2.37 million tonnes, or 8 percent more than in the same period last year.

If the price had not risen, Brazilian beef exporters will not be able to survive the weaker dollar, he said. Despite high prices, sales are even bigger with developing countries, whose economies are growing more and where consumption grows further.

The Arabs are among the main consumers of raw beef, industrialized beef and its by-products. Egypt is the second main importer of the raw product and purchased the equivalent to US$ 318 million from January to November, a 6.5 percent reduction over the same period in 2006. Purchases by Algeria totalled US$ 95 million - an increase of 1.32 percen - and by Saudi Arabia, they reached US$ 84.3 million, 13.6 percent more than in the first 11 months of last year. Algeria and Saudi Arabia are, respectively, in the 9th and 10th positions among the main importers of raw beef.

In the case of industrialized beef, Egypt is in the 9th position, with imports of US$ 8.2 million, up 12.7 percent. The United Arab Emirates are in the 14th position, with purchases of US$ 5.2 million, a reduction of 13.86 percent, and Saudi Arabia is in the 15th position, with purchases of US$ 5.19 million - up 1 percent.

For cattle by-products, Egypt was the 6th main buyer, with purchases of US$ 5.1 million, 4.1 percent greater than the purchases in the same period in 2006, and Saudi Arabia is in the 15th position, with imports of US$ 1.4 million, an increase of 8.5 percent.