Brazilian Farmers seek new trade opportunities in the Middle East and North Africa

 

 

 

 

Representatives of the Brazilian Confederation of Agriculture and Livestock (CNA) participate in the official mission of the Ministry of Agriculture, Livestock and Supply (MAPA) to the Middle East and North Africa. The group will have meetings with strategic entrepreneurs and authorities in four countries: United Arab Emirates, Kuwait, Saudi Arabia and Egypt.

The head of International Relations, Ligia Dutra, and the technical advisor of CNA’s National Commission of Poultry and Swine, Ana Ligia Lenat, are part of the delegation.

“We will accompany the minister to important markets for the Brazil’s agricultural sector. The four countries are major importers of our products, but there is room to expand and diversify the export basket,” said Ligia.

According to Ligia, Brazilian Farmers have launched an ambitious internationalization project to reach new markets and to introduce more companies in international trade initiatives.

The mission schedule will last 12 days and officially starts Saturday, September 14. The delegation will visit the cities of Cairo (Egypt), Riyadh (Saudi Arabia), Abu Dhabi and Dubai (United Arab Emirates) and Kuwait.

Brazil’s Minister of Agriculture Tereza Cristina will seek new business and investment opportunities. She also hopes to expand the range of exports from the agricultural sector.

Saudi Arabia was the 8th largest importer of Brazilian agribusiness in 2018, and is the main destination of our products in the Middle East. Egypt ranks 12th, UAE 15th, and Kuwait 45th.

Source: Agrostat/MAPA | Made by Brazilian Farmers

In 2018, the agribusiness trade balance recorded surpluses for Brazil in relation to the four countries, which are considered net importers of food and agricultural products.

In fact, agriculture is the highlight of Brazilian exports to Saudi Arabia. Since 2012, the sector has been responsible for 85% of exports to the country, reaching US$ 1.7 billion in 2018. The main products exported to Saudi Arabia belong to five main agribusiness sectors: meat, sugar and ethanol, soybean, cereals, flours and preparations and forest products.

Fresh chicken meat is the most exported product to Saudi Arabia, with sales of US$ 803.8 million. In second came raw sugar, with US$ 339.28 million in exports.

Brazilian Farmers estimate that Brazil’s potential increase in agricultural trade with Saudi Arabia could exceed US$ 2 billion per year. The sectors with the highest potential, in US dollars, for Brazilian exports to Saudi Arabia are forest products, cereals, flour and meat. However, CNA also identify good opportunities for fruits, dairy products, legumes and coffee.

Rapid population growth in Saudi Arabia and rising per capita income are important factors contributing to the increased demand for food. This contributes to the trade in fruits and legumes, which have high nutritional value. Brazil is fully capable of supplying these products.

The agricultural sector also dominates Brazilian exports to Egypt. In 2018, the sector accounted for 69% of the total shipped. The sector represented 17% of all that Brazil imported from Egypt. Fresh beef is the main item exported products sent to Egypt. Corn is also worth mentioning, yielding US$ 345 million in sales to Brazil.

With the United Arab Emirates the trade agenda is also positive for Brazilian agriculture. In 2018, Brazil recorded exports of US$ 1.35 billion and imports of just over US$ 1 million from this sector. Meat and sugar are the sectors that stand out the most.

Finally, agriculture represents almost all Brazilian exports to Kuwait, with shipments of US$ 215 million in 2018. In 2019, Brazil recorded US$ 110 million in exports from January to July, US$ 2 million more than in the same period of 2018.

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