Arabs are Third Main Market for Agribusiness

BRAZIL - The Arab market is excellent, mainly for cattle beef according to the minister of Agriculture, Livestock and Supply, Reinhold Stephanes.

13 February 2008

2 minute read

South America

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"Agribusiness projections are excellent as the world is demanding many products and Brazil is one of the few countries that can supply."

Brazilian Minister of Agriculture, Livestock and Supply, Reinhold Stephanes.

Speaking in São Paulo he said: "It is currently our third main market and may expand."

Snr Stephanes recently signed a cooperation agreement with the Arab Brazilian Chamber of Commerce with the objective to expand trade partnerships with the 22 countries of the League of Arab States. The first joint action is going to be participation in the Gulfood, the food sector fair in Dubai, to include the presence of 30 Brazilian companies.

At the same time, representatives of the ministry are expected to promote an institutional mission to Saudi Arabia and the minister himself is expected to travel to the Arab states.

Last year, agribusiness products filled 66 per cent of Brazilian exports to the Arab states and these shipments generated US$ 4.6 billion.

The main products shipped were cattle beef, chicken and sugar, which together made up around 80 per cent of the total. In beef cattle alone, Brazil exported US$ 1.9 billion to the Arab League, an increase of 27 per cent over 2006.

According to Snr Stephanes, Brazilian agricultural production should grow, on average, between three per cent and four per cent over the next 10 years.

"Agribusiness projections are excellent as the world is demanding many products and Brazil is one of the few countries that can supply," said the minister, after participating in a meeting of the Supreme Agriculture Council at the Federation of Industries of the State of São Paulo (Fiesp).

In 2007, total agribusiness exports were worth US$ 58.4 billion, an increase of 18.2 per cent over the previous year. Agribusiness imports reached US$ 8.7 billion, a growth of 12 per cent, which resulted in a surplus of US$ 49.7 billion, the largest in history.

"The Brazilian agribusiness trade balance surplus was greater than the whole Brazilian trade balance surplus," pointed out Roberto Rodrigues, former minister of Agriculture and chairman of the Superior Agribusiness Council (Cosag).

According to Snr Stephanes, Brazilian products are exported to over 150 countries and cattle beef is among the main export products. Sales of the product last year totalled US$ 4.4 billion, being the European Union the main market, with 31.6 per cent of exports.