June 16, 2008
Brazilian beef courting Mid-East buyers as exports takes a hit
Although Brazil's beef export volumes have taken a hit over the last few months, the Brazilian Beef Industry and Exporters Association will keep on working to hold the country's leadership position in areas like the Middle East and North Africa which houses some of its most important markets, the Brazilian Beef Industry and Exporters Association (Abiec) said.
"Brazilian beef enjoys a privileged status across the entire Arab market, and we will continue working to maintain that," said the new president of Abiec, Roberto Giannetti da Fonseca, who assumed the presidency a week ago.
Out of the 15 leading importer markets for raw Brazilian beef, six are Arab countries. Egypt ranks fourth in the list, with imports of US$ 91.81 million in the first five months this year, representing reduction of 40 percent compared with the same period last year.
In all, 47,640 tonnes of the product were shipped to the Arab country, decrease of 61.7 percent using the same basis for comparison.
According to Giannetti, the reduction in Brazilian beef exports volume, which totalled 1.15 million tonnes from January to May 2007 and reached 920,680 tonnes in the same period this year, happened due to the European embargo on the Brazilian product and to high prices. Egypt has also adhered to the EU embargo, said the president.
Another Arab country to which import volume decreased was Algeria, reduction of 17.24 percent. However, Brazilian revenues from exports to the Arab country grew 28.2 percent to stand at US$ 61.45 million. In the case of Lebanon, shipped volume decreased 5.2 percent, whereas revenues grew 40.2 percent.
In the case of Saudi Arabia, sales of raw beef from Brazil resulted in revenues of US$ 62 million, representing growth of 65 percent in comparison with the first five months of last year.
Both Libya and the United Arab Emirates saw volume and revenues increases.
"The Arab market ranks among the regions in which Brazilian beef enjoys the most acceptance, due to its quality, pricing, and the promotional actions we are holding (there)," said Giannetti.
More than US$ 2 billion
Brazilian beef exports totalled US$ 2.06 billion from January to May, representing growth of 10.4 percent in comparison with the same period last year.
A total of 920,860 tonnes were exported, decrease of 20.27 percent using the same basis for comparison.
According to projections by the Abiec, revenues from foreign sales of the product should reach US$ 5 billion this year, and shipped volume should surpass 2 million tonnes.
