October 8, 2008
Brazilian beef 'invincible' on Arab stage
The president at the Brazilian Beef Industry and Exporters Association, Roberto Gianetti da Fonseca, said that Brazilian beef product has no competitors at the same level on the Arab market.
Around 45 million heads of cattle are slaughtered annually in the country.
The Brazil-Arab News Agency said AbiecEgypt, Saudi Arabia, Algeria and Libya once again stand out among the ten main import markets for Brazilian beef. From January to September this year, four Arab nations consumed over 440,000 tonnes of beef made in Brazil.
Roberto Giannetti da Fonseca, president at the Brazilian Beef Industry and Exporters Association (Abiec) yesterday, Tuesday, 7 October 2008 said the Arab market is already used to importing Brazilian beef and an unbeatable image has been established in the region. The Arabs know the quality and trust that their beef is of high quality, he declared.
The executive pointed out that nowadays those who purchase Brazilian beef are developing nations, emerging markets with buying power. He added the big challenge is to access to markets where there is much protectionism like Japan, the US and Korea.
In percentages, the Arab countries represent a share of almost 20 percent of total Brazilian exports that, in the accumulated result for the year, totalled US$ 3.91 billion, a result that is 22 percent greater than in the first nine months of 2007, US$ 3.2 billion. At the same time, volume exported was 16 percent less in the same period, from 1.22 million tonnes to 1.02 million tonnes.
Fonseca said despite the reduction in tonnage, good prices guaranteed growth of 22 percent.
The month of September registered a historic monthly record in Brazilian beef exports, which reached a value of US$ 533.2 million. This value is 52 percent greater than revenues in September 2007.
He added the organisation believes that Brazilian exports should reach US$ 5.2 billion up to the end of 2008. It has also already disclosed expectations for revenues of US$ 15 billion with beef exports in 2013.
Production may grow if productivity increases, herd's increases and importantly if the informal and clandestine slaughter's reduced, which now represent between 30-40 percent of the approximately 45 million heads slaughtered in the country each year. Growth will be based on greater productivity, maintenance of emerging markets and winning new importers.
According to Fonseca, the question of clandestine slaughter should be solved with the support of the Ministry of Agriculture, which is going to tackle the matter heavily, with greater inspection. There is space to grow and the challenge is more prominent now than in the foreign market, he said.
The sector's growth estimate should be disclosed to businessmen and foreign press on Monday, 20 October 2008, in Paris, during SIAL, one of the main food and beverage fairs in the world, which takes place every two years in France.
In Fonseca's evaluation, the global crisis may favour Brazil as there would be still be opportunities for growth.
If the crisis worsens, local producers would be more severely affected and the region will have to import more, which may open opportunities for Brazil.