Brazil-More beef for Africa and Middle East.

BRAZIL - NEW MARKETS FOR BEEF.

Brazilian beef processor, Minerva, has intensified its operations in Africa and the Middle East despite the present economic crisis.

The African share in exports by the company went from 3.5 per cent in late 2007 to 17.5 per cent in the last quarter of 2008.

The information was taken from the company’s 2008 report. "In this turbulent period, Minerva adopted the strategy of reducing its exposure to Russia by operating strongly in North Africa and the Middle East," the compoany said in its 2008 report.

Out of total exports by Minerva in the last quarter of last year, 13 per cent went to the Middle East and 17.5 per cent went to Africa.

According to the company, these markets are less dependent on credit and have fixed exchange rate regime.

The African share of foreign sales by Minerva used to be much lower, at 3.5 per cent in the last quarter of 2007.

Minerva said that it even offered its products for higher prices in the African market, as a consequence of the high purchasing power that it maintains with the fixed exchange rate regime.

The company’s gross revenue from exports remained practically stable in the fourth quarter of 2008 compared with the same period of the previous year, with a slight decrease of 0.2 per cent. The figure was US$ 311.3 million, as against US$ 311.9 million in late 2007.

In the whole 2008 financial year, Minerva posted gross revenue from exports of US$ 2.1 billion, as against US$ 1.4 billion in the previous year,a growth of 28.4 per cent. Total gross revenue reahced US$ 2.3 billion in 2008, 42.5 per cent more than in 2007.

Not only Minerva, but the entire Brazilian meat production industry was affected by the international crisis late last year, with the crisis hitting exports, which fell by six per cent (in revenues), a higher rate than the reduction in foreign sales by Minerva. Brazil posted revenues of US$ 834.7 million from exports of beef during that period. In terms of volume, the reduction was even greater, down by 26 per cent to 207,500 tonnes.

The 42.5 per cent growth that Minerva obtained in its gross revenue in 2008 was mostly thanks to the domestic market. Domestic sales grew 76.4 per cent.

The company ranks among the three largest Brazilian exporters and sells to 80 different countries. Minerva has a slaughtering capacity for 6,000 heads per day.