São Paulo – The decline in fruit exports from Brazil to the Arab countries has gotten exporters in a state of alert. According to data supplied by the Brazilian Fruit Institute (Ibraf), the reduction in the first two months this year, compared with the same period of 2009, is cause for concern, but not despair among exporters. The industry is still recovering from the effects of the 2009 economic crisis, and is projecting sales levels similar to those of 2009 for 2011 and 2012.
According to Ibraf data, Brazil sold 12,000 tonnes of fresh fruit last year to countries in the Middle East, a 30.8% decline over the 17.300 tonnes shipped to the region in 2009. In the first two months this year, 1,389 tonnes of fruit were sold to the Arab nations, as against 2,100 tonnes in the first two months of 2010 (a decline of 33.85%).
The lower sales volume early this year, however, is normal, according to Ibraf’s agronomist Cloves Ribeiro Neto. "Apple is the fruit that the Arabs buy the most from Brazil. January and February are off-season months, therefore it is normal for sales to drop or be unstable in the beginning of the year. Growers begin to harvest apples in March, says Cloves.
Sales of apples have dropped more than the average early this year: 49.8% in the first two months this year, compared with the same period of last year. Mango sales have decreased by 98.86%. Coconut sales, in turn, have risen: 209% compared with the first two months of 2010. This year, 80,500 tonnes of the fruit have been sold. In January and February last year, sales reached 26,000 tonnes.
The off-season, however, is not the only problem as the year begins. According to Cloves, the exchange rate may get in the way of exports this year. For the time being, it has not been helping. "Whenever the dollar drops below 1.80 real, our business suffers. Our hands become tied, because it does not depend on us," says. The dollar is now equivalent to 1.66 real.
The share of Arab countries in Brazilian fruit exports is still small when compared to other nations. In 2009, Brazil exported 780,000 tonnes of fruit. Approximately 75% of that total went to Europe, 13% to Mercosur countries, 5% to the United States and 2% to Middle Eastern countries.
That share, however, may grow over the next few years. According to Ribeiro, the Ibraf has been promoting exchange between Brazilian and Arab businessmen. This year, for instance, Brazilian growers closed deals worth US$ 7.5 million at the Gulfood, a trade show for the food sector held in Dubai, in the United Arab Emirates. The figure represents a 226% increase over the last edition of the trade show.
*Translated by Gabriel Pomerancblum