Egypt opens market for Brazilian dairy products

Minister Tereza Cristina (Agriculture, Livestock and Supply) announced this Saturday (14) the opening of the Egyptian market for Brazilian dairy products. Awaited since 2016, the entry of products from Brazil could reach a market of 100 million consumers. 

“This is great news that we have been waiting for. Negotiations were very quick and from next month Brazil is ready to export dairy products to Egypt. Another victory in opening Brazil's markets to Arab countries”, celebrated the minister, who began a mission to the Middle East last week, seeking to strengthen the commercial partnership and open the market for Brazilian agricultural products. 

Exports of dairy products from Brazil to Egypt had been suspended since 2015 and, since 2016, there had been a request for Egypt to approve the International Health Certificate, which is the first prerequisite for this type of export. Negotiations were intensified two weeks ago. 

“This new market is made up of 100 million consumers, in addition to neighboring countries, as Egypt has several free trade agreements. We will have as competitors producers from the European Union and New Zealand, who already have this market consolidated, but in any case it is an opportunity for Brazil to gain competitiveness and have a new market for its products”, explained the Brazilian agricultural attaché at the Egypt, Cesar Teles. The business potential with the opening is around US$ 8 billion.

Egypt is the first of four countries that will be visited by Minister Tereza Cristina on her mission to the Middle East. Until September 23rd, the delegation will also visit Saudi Arabia, Kuwait and the United Arab Emirates. 

Embrapa

On the occasion, the minister also announced that the countries had started negotiations for an agreement between Embrapa and the Egyptian research center. “We are going to sign an agreement with Embrapa and we have also received many requests for investment studies in infrastructure in Brazil, mainly in the area of ports.” Tereza Cristina informed that she will forward the requests to her colleague Tarcísio Gomes de Freitas, Minister of Infrastructure, when she returns to Brazil.

At the meetings in Cairo, the reduction of export tariffs and the standardization of health certificates were discussed. This Sunday (15), the last day in Egypt, the minister participated in a seminar at the Federation of Egyptian Chambers of Commerce, where she defended the diversification of the agricultural trade agenda between Brazil and Egypt and highlighted the sustainable growth of Brazilian agriculture.

Tereza Cristina met with the Minister of Agriculture and Land Recovery, Ezz el-Din Abu Steit. They handled the process of importing Egyptian grapes and garlic and sending sheep and goats to Egypt, which will benefit breeders in the Brazilian Northeast.

In her last appointment, the minister met with the secretary-general of the League of Arab States, ambassador Ahmed Abdoul Gheit, at the organization's headquarters. At the meeting, she assessed that Brazil has a promising path towards Arab countries. The minister and the ambassador also discussed infrastructure and logistics projects for food security.

In 2018, agricultural exports from Brazil to 22 Arab countries and members of the Organization for Islamic Cooperation, totaling 55 nations, totaled US$ 16.13 billion, which represents 19% of total Brazilian agricultural foreign sales, a percentage higher than what was exported to the European Union (16%). The best-selling products were sugar, meat, corn, soy and coffee.

It is estimated that agricultural trade between Brazil and the Arab world could grow and reach US$ 895 million. The prospective products are: soybeans (bran and grains), green coffee, sugar and unmanufactured tobacco.

Source: DATA
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