Arab countries were third largest Brazilian export destination in 2019

Arab countries became the third largest destination for Brazilian exports last year, according to data from the Arab Brazilian Chamber of Commerce. In 2018, the region occupied fifth place in the ranking for Brazilian export destinations, with US$11.4 billion in exports.  This rose in 2019 to US$12.1 billion, representing a 6.3% increase during this period. In first place was China, followed by the USA.

According to the Arab Brazilian Chamber, the Arab markets sustained demand and maintained loyalty to Brazilian partners, in a year in which important buyers reduced purchases. This was the case with China, which was affected by swine fever and thus had lower demand for Brazil’s soybeans, as well as Argentina, due to its economic crisis.

“While the whole world bought 7.5% less from Brazil, representing about US$224 billion, and the surplus fell 19.46%, to US$46.674 billion, Arab countries once again increased orders, reinforcing the importance of the commercial partnership for our economy,” said the president at the Arab Brazilian Chamber, Rubens Hannun.

Brazil’s exports to the Arab bloc consisted mainly of chicken, sugar, iron ore, beef and grains. Chicken exports grew 6.4% to US$2.3 billion, sugar sales dropped 23.6%, to US$2.1 billion, and iron ore grew 7.2%, to US$1.8 billion. Beef exports increased 2.6% to US$1.1 billion and grain exports rose 46.4% to US$1.1 billion.

“Saudi Arabia has determined that by 2030 only 40% of the demand for chicken, for example, will be met via exports. Today this percentage is close to 60%. In this scenario, Brazilian companies that are leaders in food supplements, vaccines and genetics for agricultural production have a great opportunity for internationalization. In April, we will hold an economic forum to discuss these opportunities,” says Hannun, about the Brazil-Arab Countries Economic Forum, which will take place on April 14 in the city of São Paulo.

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