Brazil: shipments of halal products expected to grow 10% in 2024

Exports of halal-certified products—following Islamic principles in the production process—from Latin America to the United Arab Emirates are expected to grow by 15% in 2024, estimated the World Logistics Passport (WLP), a platform created by the Dubai government to encourage global trade.

According to Mahmood Al Bastaki, General Manager of WLP, Brazil leads the ranking of Latin American suppliers and can still benefit indirectly from the continent’s positive outlook, as many Brazilian companies exporting to the Arab world have operations in neighboring countries such as Argentina, Uruguay, and others.

“Many companies in Latin America are Brazilian. The two countries’ trade relationship is very positive. Arabs are loyal customers of Brazilian products because they know there is sanitation and halal certification,” he explained.

Considering Brazil alone, Al Bastaki expects a 10% increase in halal product sales next year.

In addition to chicken and beef, which dominate Brazilian exports to the UAE, WLP also aims to diversify and develop new trade routes for coffee, cocoa, and fruits. The UAE is a target market for specialty raw coffee beans and products from the roasting and grinding industry.

According to the executive, the fruit sector also has significant growth potential. “Brazil still underexplores the fact that Dubai is a logistics hub, meaning what arrives in the emirate can be directed to other destinations through re-export, such as Gulf countries, Asia, and Africa.”

While these potential advances have not yet gained traction, Brazil’s exports to the United Arab Emirates are virtually stable in the year-to-date of the first ten months of 2023, with a slight decline driven by meats. A strategy to reduce chicken imports affected part of the demand, focusing on local production—which boosts grain purchases for animal feed.

Brazilian government data indicates that the country shipped $1.87 billion in agribusiness products to the UAE between January and October—compared to $1.9 billion in the same period in 2022. Chicken sales totaled $742.9 million during the period, a 7.57% decrease.

Brazilian soybean meal exports reached $40.4 million, a 25.6% increase compared to the same period in 2022. Another highlight was coffee, with shipments totaling $53 million in the cumulative data for this year, a 15.8% increase.

Source: Globo Rural

Click here to read the original news report: https://globorural.globo.com/negocios/noticia/2023/11/embarques-de-produtos-halal-devem-crescer-10percent-em-2024.ghtml

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