Supply Chain

Brazil Exports To Arab Nations Hit 33-year High, Agro Products Prevail

By Reuters
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Exports from Brazil to the 22 countries of the Arab League of nations generated record revenue of $17.7 billion in 2022, the highest since 1989, the Arab-Brazil Chamber of Commerce has said.

The figure represents a 23.06% rise over the previous year and puts the Arab world as a key trade partner of the South American nation, which also does a lot of business with China and Europe.

Arab countries of the Middle East and North Africa predominately buy agro products like meat and grains from Brazil. Sales of such goods represented 71% of the total exported by Brazil to the region, the Chamber said.

As in previous years, exports of Brazilian poultry to League countries stood out, rising by 26.35% in value as deals were not deterred by attempts to grow national production in the Middle East.

Arab nations paid an average around $2,172 per tonne of Brazilian chicken in 2022, higher than $2,022 Brazil's other clients disbursed, the Chamber said.

Key Food Supplier

The data highlights Brazil's importance as a halal food supplier to the Arab world, where buyers pay a premium for meat produced according to Muslim dietary requirements. It also evidences the effects of strong demand for imports in the Middle East and North Africa, and the impact of global food inflation on trade values.

The Chamber said global food inflation was exacerbated by the pandemic and the war in Ukraine, which disrupted international corn and wheat trade flows and lifted prices.

Brazil's capacity to produce large volumes of high quality halal foods suggests the country will remain a big chicken supplier, even as importing Arab nations invest to grow local capacity subsidised by oil revenues, the Chamber said.

News by Reuters, edited by ESM – your source for the latest supply chain news. Click subscribe to sign up to ESM: European Supermarket Magazine.

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