Brazil to add flavour to UAE food security

Brazil is committed to helping the UAE’s food security agenda by bringing in the best of expertise to boost total trade to over $3 billion in 2021 against $2.9 billion recorded last year, said Sergio Segovia, president of Apex-Brasil (Brazilian Trade and Investment Promotion Agency) and Brazil Commissioner for Expo 2020 Dubai.

Brazilian government firm Embrapa has the task of boosting development in the agriculture business and is responsible for building trade relations with its global partners. The company has inked an agreement with authorities in Abu Dhabi to develop a way to produce agricultural crops, boosting UAE’s food security plans, said Segovia.

The UAE has been a major importer of food and beverages and Brazil is a major exporter of these products, with UAE-Brazil trade flow in a surplus for the latter since 2015. Considering the 2019-20 biennium, because of the pandemic, Brazilian exports fell by about 8.9 per cent, but showed a surplus of $1.3 billion — the smallest surplus in the 2015-20 period. However, in terms of absolute values, Brazilian exports have almost returned to 2018 levels.

Global imports from the UAE increased by 2.5 per cent in 2019 (related to 2018) indicating a good scenario for Brazilian exports. Brazil ranks 22nd among the main suppliers to the UAE. Trade flow (imports plus exports) in 2020 was about $2.7 billion, showing an amount approximate to the 2019 figure. Considering exports alone, Brazilian sales to the UAE in 2020 were $2 billion (-8.7 per cent compared to 2019), with the country remaining positioned as the 24th main destination for Brazilian exports.

The four main subsectors exported by Brazil to the UAE in 2020 were fresh chicken meat, raw sugar, gold in semi-manufactured forms, and fresh beef.

According to information from the Ministry of Agriculture, Livestock, and Supply, Brazilian agribusiness exports accounted for 63 per cent of the total exports from Brazil to the UAE in 2020.

Apex-Brasil has an office in Dubai since 2006, whose activities have intensified, with a tendency to strengthen even more due to Expo Dubai, in 2021. Companies supported by Apex-Brasil represented 49.5 per cent of the total exports ($ 2.2 billion) that Brazil made to the UAE in 2019. Exports by supported companies reached $1.09 billion and were made by 556 companies.

Currently, 13 trade sector projects have the UAE as a priority market, from sectors such as fashion design, textile products, beef, chicken and pork, specialty coffees, fruits, ceramics, medical/dental equipment, furniture, plastics, car parts, and technology (project with Anprotec).

Participation in high-profile events such as Gulfood is of fundamental importance to reinforce such commitment. At this trade exhibit, the expected business has more than doubled over the past five years, from $646.5 million in 2015 to $1.45 billion in 2019.

Segovia told Khaleej Times the investment in the construction of the building alone is close to $20 million in the pavilion.

“Brazil’s participation in the World Expo is mainly focused on strengthening its connections and deepening its relationship with the UAE and the region, which is also a hub/entry port to markets in the region that may offer vast growth opportunities for Brazil,” He said.

Segovia expects heavy construction to be ready by April 2021. “In May we will start the interior finishes and equipment installation, and we expect to receive our operation fitness certificate by early August. The whole month of September will be used for testing, to ensure everything will be running smoothly for the opening ceremony on October 1. Our bilateral relationship with the UAE has experienced huge progress in recent years. Besides being a major provider of food security to the UAE and to this region, there are many other industries that can bring our countries closer together, from agritech to renewables, from tourism to infrastructure and logistics.”

— sandhya@khaleejtimes.com