Trade Regulations

Egypt opens market for Brazilian dairy products

Sep, 16, 2019 Posted by Sylvia Schandert

Week 201938

Minister Tereza Cristina (Agriculture, Livestock, and Supply) announced the opening of the Egyptian market for Brazilian dairy products on Saturday (09/14). Expected since 2016, the entry of products from Brazil could reach a market of 100m consumers.

“This is great news that we were expecting. The negotiations were very fast and starting next month Brazil will be ready to export dairy products to Egypt. Another victory in opening markets from Brazil to the Arab countries,” celebrated the minister, who is on a mission in the Middle East, seeking to strengthen the commercial partnership and market opening for Brazilian agricultural products.

Exports of dairy products from Brazil to Egypt had been suspended since 2015 and since 2016 there was a request made 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 of 100m consumers, besides neighboring countries, as Egypt has several free trade agreements. We will have as competitors the producers from the European Union and New Zealand, who already have this market consolidated, but either way it is an opportunity for Brazil to gain competitiveness and have a new market for its products,” explained the Brazilian agricultural attaché in Egypt, Cesar Teles. The business potential with the opening is about US$8bn in a decade.

Egyptian Grape and Garlic

After Egypt opens the market for Brazilian dairy products, Brazil will begin the process of importing Egyptian grapes and garlic. The decision was announced on Sunday (09/15) by Minister Tereza Cristina (Agriculture, Livestock, and Supply) in a meeting with Egypt’s Minister of Agriculture and Land Recovery, Ezz el-Din Abu Steit, in Cairo.

Other topics of the meeting were the importation of oranges from Brazil and the sending of goats and sheep to Egypt, a measure that may benefit the Northeast of Brazil, where there is an advanced Embrapa research center on the activity, located in Sobral (CE). The ministers also discussed the equivalence of consular norms and health certificates.

In 2018, Brazil’s agricultural exports to 22 Arab countries and members of the Organization for Islamic Cooperation, totaling 55 nations, totaled US$16.13bn, representing 19% of total foreign sales of Brazilian agro, a percentage higher than which 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 to reach US$895m. Prospective products are soy (bran and beans), green coffee, sugar, and unmanufactured tobacco.

Egypt was the first of four countries to be visited by Minister Tereza Cristina on the Middle East mission. Until September 23, the entourage will still pass through Saudi Arabia, Kuwait, and the United Arab Emirates.

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