Companies go to Saudi Arabia to search for businesses
DCI
Brazilian entrepreneurs of the food industries want to increase the 16% of Brazilian participation in the exports to Saudi Arabia. With this goal, 16 national companies go to Saudi Agro-food in Riyadh, one of the greatest events of the food business of the Middle East held from November 1 to 4. The party is formed by Brasil Foods, Bauducco, Itambé, Minerva, Tirolez, Mococa, Dori, Riclan, Cooperfrigu, DXB, Tradeagro, Emit, Alliance, Milly, Germiterra and Florestal.
According to Tatiana Novaes, Sales and Marketing Director of Conceito Brasil, official and exclusive representative of the event, Saudi Arabia is a market in which Brazil has to consolidate itself, since it comprises 80% of the food market in the Middle East. Novaes also affirmed the companies expect a return of US$ 3 million in immediate business, which will be closed during the four days of the event, and they project to reach US$ 20 million over the following 12 months.
According to Michel Alaby, Secretary General of the Arab-Brazilian Chamber of Commerce, the countries of the Middle East have a lot of money to invest and they like "face to face" meetings. He also said that, for the first time, the Brazilian companies will offer the local businessmen the opportunity to taste the products instead of only seeing the packaging. "We have scheduled visits for the Brazilian party to the Carrefour supermarket of Saudi Arabia and we closed a deal for a festival of Brazilian products in the largest retail group of the country, Panda, which will allow consumers to have the product before the companies enter into agreements for their purchase", he explained.
"The Arabian market is a priority for the Brasil Foods [BRF]", the statement was made by the President of Sadia and Co-Chairman of the Board of Directors of BRF, Luís Fernando Furlan. "We already have an area in the Middle East, but still don't know where we are going to open the new plant", said Furlan, referring to the project of setting up a productive unit in the Arabian countries. According to a company source, the participation at the fair will be intended to analyze the responsiveness of the other countries of the Middle East, before choosing the exact location for the plant.
To the Manager of the Chamber, Rodrigo Solano, the setting up of a plant in the Arabian countries will be very positive for the strengthening of BRF in the Arabian market. "One of the paths for the companies is exactly the setting of partnerships, joint ventures in the countries where they intend to increase their market share. Today, there is the granting of multiple benefits for Brazilian companies willing to establish themselves in Arabian countries", he said.
According to the information of Sadia, the sales to the Middle East were responsible for 31% of the company exports. According to a report of the Mdic (Ministry of Development, Industry and Foreign Trade), in 2008, Sadia exported more than R$ 50 million (US$ 29.1 million) to Saudi Arabia alone. Perdigão, on its turn, announced that in 2008 the countries of the Middle East were the destination of 25% of the company exports.