Brazil Increases Middle Eastern Dairy Exports

BRAZIL - Sales of dairy products to the Middle East grew 34 per cent in January as against the same period in 2011, with a value of US$ 986,000. Exports from Brazil to the rest of the world remained stable in the period.
Brazil exported US$ 986,000 in dairy products to the Arab world in the first month of this year, according to figures disclosed by the Ministry of Development, Industry and Foreign Trade. There was 34 per cent growth over the same period last year, when sales totalled US$ 737,800.

The value represented 20 per cent of the total Brazil exported in milk and dairy products in the month, which totalled approximately US$ 5 million. The volume was stable as against January 2011. But the country imported US$ 75.2 million in sector products, which generated a deficit of US$ 70.2 million in the trade balance in the area. Imports rose, according to Ministry figures disclosed by consultancy company Scot Consultoria, 46.2 per cent over January 2011.

To the Arab market, Brazil exported items like cream and butter oil. The buyers were the United Arab Emirates, in first place, with US$ 287,600, Algeria, in second, with US$ 209,000, Saudi Arabia, with US$ 127,900, in third place, Oman, with US$ 112,000, in fourth, and Kuwait, with US$ 87,000, in fifth place.

Last year, milk collection in the main Brazilian producer states dropped 2.2 per cent over the previous year, according to a study disclosed by Centre for Studies in Applied Economics (Cepea). The reduction meant 500 million less litres of milk. Producers were demotivated due to the high production cost.

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