Halal market continues operating with good prospects for Brazilian exporters

Brazilian beef exports continue to depend on China, the consignee of 60% of its sales. Thus, in order to avoid bumps like the one caused by the recent Beijing embargo, the production chain continues to push for the consolidation of its presence in new markets. On this path, a promising alternative is a very specific segment: the halal market. Halal means “lawful” in Arabic and designates food, products, and services that respect Islamic traditions.

There are more people who profess Islam in the world than Chinese people. The vice president of the Federation of Muslim Associations in Brazil (Fambras), Ali Zoghbi, estimates that there are nearly 2 billion Muslims in the world. Officially, it is known that in 2010, the number was around 1.6 billion. By 2050, the American Pew Research Center projects 2.76 billion.

“There is no other market presenting a more favorable outlook than the halal market. There are countries housing millions that we haven’t started working with as of yet. And there are countries in which we already operate that could become important hubs, such as the United Arab Emirates, which take Brazilian products to its neighboring nations,” says Zoghbi.

According to the “State of Islamic Economic Report”, Islamic countries import US$190.5 billion worth of food annually. Of this total, 7.4% or US$ 14.1 billion is purchased from Brazil, according to data compiled by the Arab-Brazilian Chamber of Commerce (CCAB).

Check the track record of Brazilian halal beef exports to the United Arab Emirates below. Data are from DataLiner:

Brazilian Halal Meat Exports (HS 0202 and 0207) to the UAE | Jan 2019 to Nov 2021 | WTMT

Source: DataLiner (click here to request a demo)

Brazil already has an important channel in Islamic countries for the flow of chicken meat. Thus, according to Fernando Iglesias, an analyst at Safras & Mercado, shipments can be sustained even with China demanding 4% less this year. According to data from the Foreign Trade Secretariat (Secex), exports have actually increased by 7.6% as of November.

According to data compiled by the Brazilian Association of Animal Protein (ABPA), at least 1.74 million tonnes of halal chicken meat left the country between January and November this year, generating a worth of US$ 2.7 billion. Compared to the same period in 2020, the advance was 0.32% in volume and 24% in revenue.

In the case of oxen, slaughterhouses need to make adaptations to comply with religious precepts, which cover everything from the way the animal is slaughtered to the way they are cut.

Note: Zoghbi reiterates that, in addition to the Middle East, there are Muslims in many other countries, including China.

Source: Valor Econômico

To read the original full article visit:

https://valor.globo.com/agronegocios/noticia/2021/12/29/mercado-halal-continua-com-boas-perspectivas-para-os-exportadores-brasileiros.ghtml

Sharing is caring!