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The endeavour is aligned with the growing Brazilian poultry exportation to the region, a statement from the company said.

The total Brazilian poultry production reached 13 million tons in 2011, almost 6.9 percent increase from 2010. At the same time, the exportation is expected to total 3.937 million tons, over 30 percent of the total production, according to Brazilian Poultry Union (UBABEF).

“The Middle East region is a focal exportation and trading hub for Brazil. We are confident in the prospects for the upcoming year and will continue to support our business partners by supplying top quality halal and non-halal chicken products at competitive prices,” a spokesperson for BrazArtis Assessoria em Comercio Exterior said.

Brazil’s exports span across the whole GCC region including Saudi Arabia, UAE, Qatar, Jordan, Bahrain, Kuwait, Lebanon, Syria and Oman.

As part of strong tie between Brazil and the Middle East, select exports are certified by the Central Islamic Brazilian Halal Food (Cibal Halal), the Brazilian Islamic Centre for Halal Food Stuff Association. – TradeArabia News Service

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Reasons include the weak dollar’s affect on certified meat abroad and Brazil’s growing middle class, which is buying more meat at home, Sheikh Ali Achcar, religious affairs spokesman for CDIAL HALAL Brazil, told reporters.

More than 70 poultry and beef processors in Brazil and Uruguay are now halal certified and have specialty meat preparers placed in-company by the organization CDIAL HALAL Brazil, which has been permitted by every Arab country in the world to pursue certifying Brazilian meat producers.

More than 100 countries in the world with Arab populations now receive halal-certified meat products from Brazil, with roughly 85,000 metric tons per month being exported by producers certified by this organization alone.

But the halal fever amongst Brazilian meat processors may be cooling, said Achcar. As the American dollar has consistently lost value against the Brazilian real currency over the last year, halal-certified products have become more expensive for producers to export.
In addition, Brazil’s growing middle class is boosting demand for meat products at home, motivating a small but growing handful of meat producers to drop their halal-certified efforts altogether and refocus that meat for domestic sale, where they are able to turn more profit.

Brazilian halal-certified poultry processors, however, are trying to hang on to their market share, despite the currency disadvantage.

In many Gulf countries, chicken and rice is a cultural diet staple that is consumed daily. It is an incredibly valuable, reliable consumer base that Brazil’s biggest poultry producers don’t want to lose, explained Achcar.

With Brazilian halal-certified poultry becoming more than twice as expensive as it was five years ago, some producers like Sadia are still selling poultry to Middle Eastern markets at a loss, he said, just to ensure those societies maintain poultry as a main part of their diet.

Source: newsroom – meattradenewsdaily.co.uk

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Internationally, the world traded a staggering RM466.80 billion worth of Halal food products annually. The growing demand makes it the single biggest discovery in the specialty food market in recent times.

According to Maharlika Agro-Marine Ventures Corporation in the Philippines chairman and chief executive officer (CEO) Vicentre Lao, a large Muslim population, rich natural resources, adequate infrastructure, self-sufficiency in the poultry industry were said to be factors which the four countries in BIMP-Eaga could harness together in the pursuit of capturing a larger Halal chicken market pie.

A closer look was undertaken by the German technical Cooperation Agency (GTZ) as a part of its support to BIMP-Eaga’s over arching goal to narrow the development gap between the countries. Its senior advisor Mary Jean T Roxas said, “The current price of chicken meat per kilo produced in BIMP countries range between RM5.94 and RM8.65. When compared with the RM4.98 per kilo offered by Brazil, the world’s largest Halal chicken producer, it seemed that BIMP-Eaga did not stand a chance.

“To compete in the Halal export market with big players like Brazil requires long term changes and investments and will be challenging. Now the question is would that prevent BIMP-Eaga from its vision of attaining even a modest market share?,” she added.

GTZ offered several ways to improve the competitiveness. It said that since 60 per cent to 70 per cent of the cost of poultry production goes to feed, it makes sense to reduce this input cost by increasing the efficiency and scale of local corn production, source soy beans to jointly increase bargaining power and share cost to explore substitute inputs for feed production.

“A Taiwanese company located in Sarawak’s Tanjung Manis Eco Halal Park is developing an alternative to soya for poultry feed derived from seaweed which is abundant in the region,” Jean said.

Apart from that, value added processed poultry products such as Halal chicken curry and sausages could also command higher prices in the market. Moreover, Brunei Darussalam offers its Halal Brand and market access to export processed goods outside BIMP-Eaga.

Jean further explained, “Sarawak’s Tanjung Manis Eco Halal Park is a good example to foster cooperation under BIMP-Eaga with its proximity to West Kalimantan where there are a number of poultry raisers and Brunei Darussalam for export through the Brunei Halal Brand and also for possible financial backing.”

To support in the integration process of the Halal poultry sector in the region, a series of training workshops were being conducted in the four countries. “Through the partnership of GTZ with the International Halal Integrity Alliance Inc (IHIA), this activity is aimed to promote best practices in assuring Halal integrity across the entire supply chain and contribute in building BIMP-Eaga as a reliable supply base for authentic Halal poultry products,” said Jean.

The trainings were conducted in Brunei Darussalam last July 12-13, Pontianak, Indonesia last July 15-16, and Cagayan de Oro, Philippines last October 15-16, 2010. Kota Kinabalu, Sabah, Malaysia would host the next training scheduled on October 18-19, 2010. These developments would enable poultry raisers such as Lao to export, cooperate with one another and to collectively build their common competitiveness in Halal poultry in the region.

The IHIA was the prime mover in the development of the Global Halal Standard which underwent a process of technical consultations in Europe, Middle East and Africa, and the Asia Pacific. These modules were deliberated and discussed among the major industry players, government bodies and non-profit establishments.

GTZ, on the other hand, is an international cooperation enterprise for sustainable development with worldwide operations. It provides viable, forward-looking solutions for political, economic, ecological and social development in a globalised world.

“ GTZ promotes complex reforms and change processes with an overall objective of improving people’s living conditions on a sustainable basis. Our project in BIMP-Eaga aims to promote economic cooperation through facilitating trade, tourism and investment in the region,” she concluded.

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Brazil’s Poultry Exporters Association (Abef) promises to work hard
to open new markets this year, in order to partly make up for the
losses incurred due to the appreciation of the real (the Brazilian
currency) against the dollar, which made the domestic product more
expensive abroad, and due to the global demand retraction seen in 2009.

The organization’s executive director, Ricardo Santin, informed that
the markets selected are the United States, Mexico, Indonesia,
Malaysia, Nigeria, Sudan, and Senegal. “We want to open up markets in
order to have new sales options,” stated the executive.

According to him, the industry resisted the international financial
crisis well, “but is not doing a good job of exiting it,” precisely due
to the depreciation of the dollar, which forces companies to bring down
their margins.

Exporters also want the federal government to give the industry
breaks from some taxes, so as to reduce production costs, and to put
pressure on countries that impose barriers on Brazilian products that
are considered “illegitimate.” As an example, Santin mentioned India.

In 2009, Brazilian chicken exports totaled 3.63 million tons, a
figure very similar to the volume shipped in 2008. Revenues, however,
dropped by 16.33% and totaled US$ 5.8 billion, as against US$ 6.9
billion in the previous year.

There was growth in sales only to the Middle East, which is the
leading market for Brazilian chicken exports, and to Africa. According
to Santin, it was these two markets, in particular the Middle East,
that prevented exports from dropping further in 2009.

He asserted that there was no retraction of demand in the Middle
East because there “the GDP was less hit by the crisis than were other
parts of the world.” The executive adds that local production in the
region was unable to match the rising consumption, and that there was a
vast supply of imported products at lower prices than in 2008.

Other factors, according to Santin, vary from country to country, as
is the case with Iraq, which strongly increased its chicken imports,
non-existent until recently.

He also stated that Brazil is increasingly consolidating its markets
in the region and perfecting the quality of its products. Halal
slaughter, carried out according to Islamic tradition, for instance, is
more and more widespread at Brazilian slaughterhouses. “The figure is
on the rise,” he said.

In the case of Africa, Santin stated that certain markets retrieved
their liquidity as a consequence of the oil price recovery, such as
Angola, and others, such as South Africa, reduced their import tariffs.

Egypt, which until a short time ago did not import chicken from
Brazil, increased its purchases by more than 100%. In this case,
however, the executive said that the performance is probably due to the
country’s conjuncture. A few years ago, the Egyptian government ordered
the culling of chicken in the country because of the avian flu, and
then opened up the market to imports.

Another factor that favors sales to Africa is the population’s
rising income. According to Santin, the first thing a citizen does when
he has some money is to consume more animal protein, of which chicken
is the cheapest.

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28 Dec 2009

More Halal beef for Arab countries – Egypt, Libya and Algeria should
collaborate with the recovery of Brazilian bovine meat exports next
year, says Roberto Giannetti da Fonseca, president of the Beef Industry
and Exporters Association.

Arab
countries in North Africa, such as Egypt, Libya and Algeria, should
contribute to the recovery of Brazilian beef exports in 2010, said the
president of the Brazilian Beef Industry and Exporters Association
(Abiec), Roberto Giannetti da Fonseca, in an interview to ANBA, after a
press conference at the organization’s headquarters.

Fonseca
explains that exports to Egypt, one of the five leading buyers of
Brazilian beef, have decreased due to the crisis this year, but started
to recover in the second half. “I believe that in 2010 we are going to
export a similar or even slightly higher volume than in 2008, before
the crisis,” he said.

According to him, Libya and Algeria are also
important markets for Brazilian beef, of which the leading buyer,
Russia, imported 17% less in terms of volume and 39% less in terms of
value from January to November 2009, compared with the same period of
last year. “It is a very important region that Brazilian beef has
conquered, and we intend to keep it growing, because it is a market of
hundreds of millions of people, an important destination for Brazilian
beef, ” said Fonseca of the Arab countries in North Africa.

From
January to November this year, Egypt imported 12% more raw beef from
Brazil, volume-wise, whereas imports by Lebanon, in the Middle East,
have grown 32%. As for imports of processed beef, Jordan had the most
significant growth of all countries: 76% in volume and 78% in value.
Overall, revenues from exports have decreased by 25%, totalling US$ 3.7
billion, and export volume saw a 12% reduction, totalling 1.1 million
tonnes.

During the press conference, Fonseca stated that beef
exports are in a moment of recovery. He claimed that the industry’s
profitability will be higher in 2010. “We are certain that the crisis
has passed.” For next year, Fonseca says that he is expecting beef
exports to grow by 10% in volume and from 10% to 20% in value.

With
regard to meat production in Brazil, the ABIEC president informed that
in five or six years, there needs to be an increase from the current 9
million tonnes to approximately 14 million tonnes in order for the
country to be able to meet its domestic and foreign demands. Presently,
2 million tonnes of beef produced in the country are exported.

Another
point touched on by Fonseca was the law that mandates traceability of
Brazilian cattle. Passed in November this year, it forces breeders to
adopt sustainable practices, as well as sanitary measures to prevent
livestock from being bred in deforestation areas, for instance.

To
Fonseca, the adoption of the law should differentiate between legal
breeders and illegal ones. “Those who wish to be on the international
market and work with Abiec members are going to have to meet our
demands [for cattle traceability],” he said. “We need to have modern,
sustainable, productive cattle breeding.”

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The Middle East is the main
consumer market for chicken produced in the state of Paraná, according
to the Brazil-Arab News Agency (ANBA). In 2009 alone, up to November,
the state shipped 874,200 tonnes to the region, generating revenues of
US$1.34 billion.

According to Domingos Martins, the chairman of
the Union and Association of Poultry Slaughterhouses and Farmers of the
State of Paraná (Sindiavipar), of the 21 associated poultry producers
that sell abroad, all export to the Middle East.

“It is a very
interesting market to us. We have partnerships with Iraq, Iran and the
Emirates. The Middle East was also an important partner for large
companies, like Sadia, now BR Foods, and Aurora, for example.”

Specific
cuts and special types of chicken are the differential for exports to
the Arab countries. Mr Martins explained that the broiler type of
chicken, for example, weighing between 900 grams and 1.3 kilogram is
consumed exclusively in the Middle East, where it is sold whole,
without giblets. Fillets and boneless parts are also part of the Arab
preference.

The president at Sindiavipar believes that the growth
of exports to the Middle East should reach 10 per cent in 2010, the
same percentage as growth there should be in 2009. “We hope for great
growth,” he said.

Mr Martins is also the owner of a poultry farm
in the city of Arapongas, in Londrina region. Its chicken brand, Frango
a Gosto, exports practically its entire production of fillets to the
Middle East, especially Iraq and Iran. Production reaches between 160
and 200 tonnes a month, with revenues of US$400,000 per month, which
represents between six and seven per cent of company revenues.

“Our
industries are modern, we have quality, quantity and price. We may
supply within their specifications,” said Mr Martins regarding Paraná
state poultry exports.

Frango Canção, from Maringá, exports 30 per
cent of its production of 10,000 tonnes a month, with half of the
foreign sales going to the Middle East. According to Edemir Trevizoli
Júnior, export manager at the poultry producer, this represents between
15 and 20 per cent of monthly revenues for the company.

The United
Arab Emirates, Iraq, Bahrain, Qatar, Oman, as well as Egypt, in Africa,
are the main Canção buyers in the Arab nations.

The poultry
producer has 10 employees working in halal slaughter, all from the
Federation of Muslim Associations of Brazil (Fambras). Each month,
shipments total 1,500 tonnes of poultry slaughtered according to
Islamic regulations, according to ANBA.

“Today, the Middle East is
the main destination for our exports and we are identifying great
potential to increase our participation,” said Mr Trevizoli.

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08 Dec 2009

Bovine meat exports from the Brazilian state, Mato Grosso, to the
Middle East in October grew 41 per cent in comparison with September.
Saudi Arabia, Iraq, Dubai, Qatar, Bahrain and Lebanon were the leading
buyers.

The
rate is equivalent to the sale of 986,000 kilograms more beef to the
Arab countries, according to the Brazil Arab News Agency.

Luis
Carlos Meister, cattle breeding consultant to the Agriculture and
Cattle Breeding Federation of the State of Mato Grosso (Femato),
believes that this expansion was driven by government purchases from
Arab countries in order to replenish inventories. From January to
October this year, bovine meat sales to the Middle East totalled US$
62.11 million.

In comparison with September, Mr Meister underscored
that during part of the month, the Arab countries were observing the
Ramadan fast, which naturally led to a decrease in the region’s beef
imports.

The Femato consultant also informed that, from January to
September 2009, Mato Grosso exported 133,000 tonnes of beef to the
Middle East, 35.5 per cent less than in the same period of 2008.
According to Mr Meister, beef exports were harmed by the crisis, but he
believes that the recovery that took place in October should be
sustained.

Mr Meister said that the Middle East is an important
market for Mato Grosso, due to the fact that it “is a large consumer
market, [it buys] large volumes and has high purchasing power.”

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       Halal
certification guarantees that food is produced according to the
regulations of Islamic law and so is allowed for consumption by around
1.3 billion Muslims worldside.

       ”Ninety per cent of
Brazilian companies are currently getting ready to receive halal
certification,” Ali Saifi, Vice President of the Centre for Promotion
of Islam to Latin America (CDIAL) told The Brazil-Arab News Agency.

 
     CDIAL is one of the institutions that certifies slaughterhouses
for halal slaughter of beef and poultry. According to the Federation of
Muslim Associations of Brazil (Fambras), Brazilian companies are
conscious of the importance of halal, not questioning the demands
necessary for certification. They always show interest in adapting,
when it is necessary, understanding that getting halal certification,
far from being a hardship, is an addition to quality and excellence.

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