Exports from Brazil to the Arab League reached record revenues of US$ 17.743 billion, up 23.06% over the previous year and the best result in the historical series that started in 1989.
Data compiled by the Market Intelligence Department of the Arab-Brazilian Chamber of Commerce show that exports from Brazil to the bloc of 22 countries with an Arab majority in the Middle East and North Africa had a high prevalence of agribusiness products, responsible for 70, 87% of revenues generated throughout the year, or US$ 12.574 billion, 40.74% increase over the previous year.
Also according to the survey, the list of exports to the region was led by sugar (US$ 3.443 billion, up 24.73% over the previous year), poultry derivatives (US$ 3.164 billion, +30.58% ), iron ore (US$2.914 billion, -24.03%), corn (US$2.013 billion, +92.12%), soybeans (US$1.107 billion, +73.53%) and beef products (US$ $1.044 billion, +13.55%).
Top destinations were United Arab Emirates ($3.260 billion, +40.09%), Saudi Arabia ($2.924 billion, +41.26%), Egypt ($2.843 billion, +41.20%), Algeria ($1.918 billion, +26.35%) and Bahrain ($1.415 billion, -25.72%) Morocco ($1.067 billion, +88.82%), Oman ($1.040 billion, -32, 68%) and Qatar (US$614.63 million, +54.20%).
The result drew attention to the increase in Arab sales to Brazil, to US$ 15.037 billion, an increase of 53.37% over 2021. As a result, the trade flow (sum of exports and imports) between Brazil and the Arab League reached unprecedented mark of US$ 32.780 billion, with a positive balance for the Brazilian side of US$ 2.706 billion.
Agro products were sold at average prices 14.40% higher compared to 2021. The analysis considers the values and volumes registered by the approximately 190 SH4 positions (product categories) sent from Brazil to the Arab League, especially when analyzed the products at the forefront of the list.
Among the fifteen ‘sales champions’, the one with the highest increase was coffee. THE commodity was negotiated in the Arab League at US$ 3,962.57 per ton, an increase of 88.10% over the previous year. Corn was sold at US$ 273.96 a ton, an increase of 36.46% over 2021. Poultry meat recorded an increase of 26.23% in prices, to US$ 2,171.96 a ton.
According to Tamer Mansour, secretary general at the Arab Brazilian Chamber, the rise in average prices is a reflection of the heated demand for food in the region and, also, of the strong inflationary pressure caused by the pandemic and the war in Ukraine, affecting costs with inputs, fuels and processes. logistics, including in the Brazilian agro chains.
“The conflict also had the effect of restricting the global supply of grains, especially corn and wheat. The consequence was that the Arabs sought these and other products from suppliers with available goods, which led to higher prices than inflation. [5,79%, para o IBGE]with profits still favored by the drop in the real,” he said.
Still according to Mansour, early vaccination against covid-19 in the Gulf favored the resumption of stopover tourism (stopover), boosted by Formula 1 awards across the region, Expo 2020 in Dubai, the Club World Cup and the resumption of Muslim pilgrimage, which, historically, are events that demand food.
The Qatar Cup also helped. By attracting one million fans to the host country and neighboring countries, the World Cup leveraged sales of Brazilian food, especially animal proteins in the months leading up to the event held in November and December.
Between January and October, chicken sales to the Gulf Cooperation Council (bloc with Saudi Arabia, Bahrain, Qatar, United Arab Emirates, Kuwait and Oman) grew 37.14% over the same period of 2021. Beef revenues grew 30.87%.
The executive also believes that food shipments should continue at an accelerated pace in the first months of 2023 due to the preparation for Ramadan, the holy month of Muslims, a floating holiday that begins in March and ends in April.
“The Arabs will continue to be important buyers of Brazilian food. But it is clear that they are investing heavily to reduce dependence on external food. Our mission is to seek space in the value-added categories,” he says.
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