Brazilian businesses look to expand halal food exports to Arab countries, Islamic communities

Special Brazilian businesses look to expand halal food exports to Arab countries, Islamic communities
Brazil is already the leading exporter of halal meat and poultry to the Arab world but authorities believe the wider halal market holds even greater potential and are taking steps to unlock it. (Shutterstock)
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Updated 17 March 2023

Brazilian businesses look to expand halal food exports to Arab countries, Islamic communities

Brazilian businesses look to expand halal food exports to Arab countries, Islamic communities
  • Project incentivizes food companies to obtain halal certification to access Muslim markets worldwide
  • Exports to the Arab world from Latin America’s biggest economy reached $17.74 billion in 2022

SAO PAULO: Brazil, the world’s leading exporter of halal meat and poultry, is now seeking to expand the selection of food products it could potentially export to the world’s 57 Muslim-majority nations, as well as Islamic communities in other countries. 

The Halal Brazil project — launched by the Arab Brazilian Chamber of Commerce and the Brazilian Trade and Investment Promotion Agency, known as ApexBrasil — aims to incentivize food and beverage companies in the country to get halal certifications and export to the Muslim world. 




Osmar Chohfi, president of the Arab Brazilian Chamber of Commerce. (Supplied)

The project will reach at least 500 small and medium-sized enterprises, and inform them of the benefits of seeking a halal certification and entering Muslim markets worldwide. 

“Animal protein exports to the Muslim world constitute a success story in Brazil,” Silvana Scheffel Gomes, head of marketing at the Arab Brazilian Chamber of Commerce, told Arab News. 

“Although we aren’t a Muslim country and only have a small Islamic community, our businesspeople made an effort to qualify their companies to get into those markets. Inspired by that example, we now want to broaden our exports and take more Brazilian food products to Muslim nations.” 

Nuts, dairy products and fruit are among the items that could be exported by Brazilian companies, she said. 




The Halal Brazil project will reach at least 500 small and medium-sized enterprises, and inform them of the benefits of seeking a halal certification and entering Muslim markets worldwide. (AFP)

Over a period of two and a half years, the project’s participants will learn about Muslim markets and halal certification. The companies that decide to seek a certification will be helped by the project organizers, with up to half the costs being paid by the program. 

“We’ll also help some companies take part in promotional activities, including international fairs and exhibitions,” Deborah Rossoni, a foreign trade analyst at ApexBrasil, told Arab News. 

“Small companies usually can’t attend events abroad, so it’s important for us to allow them to do so.” 

Ignorance about the potential of Muslim markets and the halal certification process still prevails among most SMEs in Brazil, said Rossoni. 

“Many people think it’s complicated to fulfill the requirements and obtain a halal certification. At times, a company will have to invest in new equipment in order to comply with halal demands, but it may be the case of only dividing production lines, for instance,” she added. 

Ahmad Saifi, director of Cdial Halal — a major certifier in Latin America — told Arab News: “More and more Brazilian fish-farming companies have been looking for a certification. The Muslim consumer certainly prefers certified products.” 

Saifi said fish producers have recently begun to attend international exhibitions in the Muslim world, and felt that both tilapia and native species such as the freshwater tambaqui and pirarucu fish are drawing the attention of Muslim importers. 

“That segment is starting to look to international markets, and has a good opportunity to sell its premium products abroad,” he added. 

Caxias, a tilapia producer in the Brazilian state of Parana, is one of the companies that recently obtained a halal certification. 




For Caxias fish farm, obtaining a halal certification was not a complex process, according to its owner Jean Carlo Kuligowski. (Supplied)

According to Caxias owner Jean Carlo Kuligowski, one of the company’s providers visited Expo 2020 in Dubai and noticed the potential of Brazilian fish in the Muslim world. “We were advised by them to try and get a halal certification, and we decided to do it,” he told Arab News. 

It was not a complex process for Caxias. Production is concentrated at a farm with no other animal species — something that would have required more significant adaptation. 

“We already adopted several sanitary protocols and had our processes fully documented. No great changes were needed,” Kuligowski said, adding that Caxias obtained a halal certification last August. Now, the packing company that receives its fish is also working to get a certification. “We’re planning to export to Dubai at first, reaching other Muslim markets from there,” he said. 

Kuligowski already feels that the certification is paying off. “The certificate shows that we have a high-quality product, something that’s helping our business in the domestic market. I’d recommend it to everyone,” he said. 

Certifiers such as Cdial Halal are also taking part in Halal Brazil. Their role is to provide useful information to SMEs and help them navigate the decision-making process. 

“Brazil is a gigantic halal exporter, but large companies dominate most sales. We must not only improve our commercial presence in the Muslim world, but also introduce more sophisticated products,” Saifi said, adding that this has already begun. Acai berries, for instance, are now readily available in the Arab world. 

“In Dubai and elsewhere in the Middle East, Brazilian jiu-jitsu is widely taught in gyms and schools. In Brazil, the jiu-jitsu culture involves the consumption of acai due to its high energetic value. The same thing is happening there (in the Middle East),” Saifi said. 

FASTFACTS

  • Brazil’s exports to the Arab world reached $17.74bn in 2022.
  • Sugars and sweeteners were the top exports to the Arab world, totalling $3.4bn in 2022.
  • Meat and poultry, both fresh and frozen, followed closely behind, amounting to $3.164bn. (Source: ABCC) 

Versions of processed acai are increasingly being exported to the region — not only the raw material, but items with added value, he said, adding: “That’s the kind of movement we must seek now.” 

Rossoni agrees, saying exports of commodities have been tremendously important for Brazil’s economy, but the country can now prioritize “products with added value, including processed meat items and beverages.” 

She added: “Offering the final products under our own brands can certainly generate great results.” 

Gomes said a new edition of Halal Brazil could focus on other segments such as pharmaceuticals and cosmetic products. 

“We’re already working with the participants, and later this year we’ll take some of them to fairs in the Middle East,” she added. 

Brazil’s exports to the Arab world reached $17.74 billion in 2022, according to recent reports released by the Arab Brazilian Chamber of Commerce. 

Products such as cane or beet sugar and chemically pure sucrose in solid form were the top products exported to the Arab world, totaling $3.4 billion in 2022. Meat and poultry, both fresh and frozen, followed closely behind, amounting to $3.164 billion. 

This was followed by iron ores and concentrates including roasted iron pyrites worth $2.9 billion, maize or corn worth $2 billion, soybeans worth $1.1 billion, and frozen meat of bovine animals worth $805.6 million. 




Companies that decide to seek a halal certification will be helped by the Halal Brazil project organizers, with up to half the costs being paid by the program. (AFP)

In June last year, the Council of Saudi Chambers announced the formation of the Kingdom’s side in the Saudi-Brazilian Business Council and the nomination of its executive committee members, headed by Mishaal bin Hathleen and his two deputies Waad Abu Nayan and Badr Al-Busais. 

Food security, air and sea logistics, energy, industry and defense are seen as particularly strong areas of future cooperation. 

 


Saudi Arabia, Miami offering development blueprint for rest of the world: FII Priority panel

Saudi Arabia, Miami offering development blueprint for rest of the world: FII Priority panel
Updated 30 March 2023

Saudi Arabia, Miami offering development blueprint for rest of the world: FII Priority panel

Saudi Arabia, Miami offering development blueprint for rest of the world: FII Priority panel
  • FII Chairman and Saudi Public Investment Fund Gov. Yasir Al-Rumayyan joined Miami Mayor Francis Suarez to discuss how humanity can get through the challenges of a post-COVID world
  • Al-Rumayyan said progress could be achieved anywhere in the world by running full diagnostic of economy and society

MIAMI: Economic and social reforms being carried out on a national level in Saudi Arabia and on a city level in Miami offer a model for progress and development for the rest of the world, the FII Priority conference heard on Thursday.

FII Chairman and Saudi Public Investment Fund Gov. Yasir Al-Rumayyan joined Miami Mayor Francis Suarez to discuss how humanity can get through the challenges of a post-COVID world, marked by the war in Ukraine, potential economic crises across the world, catastrophic weather events and soaring costs of living.

Since his election as mayor, Suarez said he had transformed Miami’s economy through lower taxation, investment in public security and enticing the future technology industry to the city, telling the conference that parallels could be drawn with Saudi Arabia’s transformation through its Vision 2030 plan.

Al-Rumayyan agreed, adding that progress could be achieved anywhere in the world by running a full diagnostic of an economy and society, as happened in the Kingdom with the launch of its Vision 2030 plan, by setting benchmarks, targets and key performance indicators.

“(The plan) is very challenging, but achievable,” he said. “You need the political will, the right processes and the right people. That’s what has made it work so well, so far, and hopefully we will achieve all of our targets by 2030,” he added.

Al-Rumayyan highlighted progress already made ahead of schedule in certain metrics across the Kingdom, including having 37 percent female employment by 2020, 7 percent more than initially expected, as well as Saudi Arabia’s 8.7 percent gross domestic product growth in 2022, which was 1.2 percent more than predicted by the IMF, making the Kingdom’s economy the fastest growing in the G20.

This week, with nationwide unemployment falling below 9 percent in Saudi Arabia for the first time, Al-Rumayyan was also keen to stress that Vision 2030 does not set out simply to create jobs, but to create “good quality” jobs, which is key for engaging an ever-youthful workforce.

Calling PIF the “enabler of Vision 2030,” Al-Rumayyan added that a healthy investment portfolio such as the Kingdom’s was key to sustainable progress and development; he highlighted its assets are worth $650 billion today, but it plans to expand this to $1 trillion by 2025 and to between $2-$3 trillion by 2030.

As chairman of Saudi Aramco, Al-Rumayyan outlined the company’s green energy ambitions and its low-emission credentials, but warned that the approach of some countries toward fossil fuels threatened the likelihood of achieving real development as a result of chasing unrealistic clean energy goals.

“Oil, gas and fossil fuels is not such a bad thing,” he said. “I could talk for days about why we should really invest in exploration. We should have long-term views and not (follow) a certain ideal or ideology without thinking about the consequences of that,” he added.

Completely dropping fossil fuels is not a practical solution for global development and progress, Al-Rumayyan told the panel, adding that the shift from traditional to renewable sources of energy would be a slow process, especially considering that much of the net zero infrastructure still requires petrochemicals and fossil fuels to produce.

The PIF governor said: “Some of the governments around the world bullied the oil and gas companies (because of the climate mission) and instead of looking at the problem and trying to fix it, they just wanted to stop it, and what happened after that?

“It started with the oil crisis, because you have less exploration, less supply and demand is increasing, because we want to change to renewable. I understand that, but it takes time to have a transition from fossil fuels to renewables.

“Are we making things better, or worse? From two sides, first, (damage to) the environment and secondly the affordability of energy for the world’s people, and that’s the problem we are facing now,” he added.


Oil rises on US crude draw and Iraqi supply risks

Oil rises on US crude draw and Iraqi supply risks
Updated 30 March 2023

Oil rises on US crude draw and Iraqi supply risks

Oil rises on US crude draw and Iraqi supply risks
  • US crude oil stockpiles fell unexpectedly in the week to March 24 to a two-year low
  • Crude inventories dropped by 7.5 million barrels, compared with expectations for a rise of 100,000 barrels in a Reuters poll of analysts

LONDON: Oil prices rose on Thursday as a surprise drop in US crude stockpiles and a halt to exports from Iraq’s Kurdistan region offset a smaller than expected cut to Russian supplies.
Brent crude futures rose 57 cents, or 0.73 percent, to $78.85 a barrel by 1327 GMT, while West Texas Intermediate crude rose 82 cents, or 1.12 percent, to $73.79.
US crude oil stockpiles fell unexpectedly in the week to March 24 to a two-year low, the Energy Information Administration said on Wednesday.
Crude inventories dropped by 7.5 million barrels, compared with expectations for a rise of 100,000 barrels in a Reuters poll of analysts.
The continuing halt to exports from Iraq’s northern region provided further support.
Producers have shut in or reduced output at several oilfields in the semi-autonomous Kurdistan region of northern Iraq after the northern export pipeline was shut, with more outages on the horizon, company statements showed.
But the Kurdistan-Iraq premium in oil prices could vanish sooner than expected, Citi analysts said Thursday.
The “changes in Iraq’s domestic politics may lead to a durable political settlement very soon,” Citi said, estimating that pipeline flows could increase by 200,000 barrels per day (bpd).
These factors offset bearish sentiment after a lower than expected cut to Russian crude oil production in the first three weeks of March.
The 300,000 bpd production decline compared with targeted cuts of 500,000 bpd, or about 5 percent of Russian output, sources familiar with the data told Reuters.
Markets are now waiting for US spending and inflation data due on Friday and the resulting impact on the value of the US dollar.
Meanwhile, OPEC+ is likely to stick to its existing deal on reduced oil output at a meeting on Monday, five delegates from the producer group told Reuters.
“While we think oil prices may remain volatile in the near term, we still expect rising Chinese crude imports and lower Russian production to lift prices over the coming quarters,” UBS said on Thursday.
China’s refined fuel consumption this year is likely to grow 3 percent from 2019 pre-COVID levels, state energy giant PetroChina said on Thursday.
“If all goes as expected, and we manage to avoid a recession, oil prices will dance around $75-$85/bbl in the coming months,” FGE analysts said in a note.


Closing bell: Saudi bourses edge up 

Closing bell: Saudi bourses edge up 
Updated 30 March 2023

Closing bell: Saudi bourses edge up 

Closing bell: Saudi bourses edge up 

RIYADH: Saudi Arabia’s Tadawul All Share Index rose for the sixth session in a row on Thursday, up by 86.92 points – or 0.83 percent – to 10,590.10, driven by favorable market conditions. 

Parallel market Nomu also went up by 288.68 points – 1.47 percent – to close at 19,892.03, while the MSCI Tadawul 30 Index rose 1.09 percent to 1,435.05.

The total trading turnover of the benchmark index was SR6.2 billion ($1.65 billion).

The top gainer of the day was Gulf Union Alahlia Cooperative Insurance Co. whose shares went up by 9.93 percent to SR9.74. 

Other top gainers of the day were BinDawood Holding Co. and Batic Investments and Logistics Co. whose share prices rose 8.39 percent and 5.99 percent respectively. 

Meanwhile, Red Sea International Co. announced that it will not be able to publish its annual financial results ending on Dec. 31, 2022 as the firm is still working with the external auditor to issue the annual financial statements. 

It also noted that it will complete the audit work and publish the annual financial statements before April 27, 2023. 

Red Sea International Co. was also the worst performer on Thursday, as the company’s share prices dropped by 3.82 percent to SR25.15. 

On the announcements front, Saudi Real Estate Co., posted a net profit of SR110.5 million in 2022, almost double the earnings of SR 54.9 million in 2021. As the profits surged, the company’s share prices ticked up on Thursday by 0.16 percent to SR12.38. 

Raydan Food Co. also announced its financial report. The company narrowed its 2022 net losses to SR 24.6 million, from SR 42.2 million in 2021.The shares of the firm, however, dropped by 2.69 percent to 25.35. 

Horizon Food Co. reported a 12 percent dip in its earning to SR8.88 million in 2022, compared to SR10.16 million in 2021. The company attributed the decrease in net profit to a rise in selling and marketing expenses due to increased sales and geographical expansion. Horizon Food Co.’s share prices remained unchanged on Thursday at SR40.35. 

Another company which announced its financial report was MOBI Industry Co. The firm reported a 13.68 percent fall of net profit year-on-year to SR13.92 million. Despite a fall in net profit, the company’s share prices rose 0.35 percent on Thursday to SR58. 

Fesh Fash Snack Food Production Co. reported that its net profit surged 54.67 percent to SR2.16 million in 2022, compared to SR1.40 million in 2021. Amid a rise in profit, the company’s share prices dropped 1.2 percent to SR144 million. 

Natural Gas Distribution Co. also announced its financial results. The firm’s net profit rose by 32.66 percent in 2022, compared to SR2.48 million in 2021. The company’s share prices fell by 0.97 percent SR51.


Saudi capital market regulator gives nod for 4 new listings on stock exchange

Saudi capital market regulator gives nod for 4 new listings on stock exchange
Updated 30 March 2023

Saudi capital market regulator gives nod for 4 new listings on stock exchange

Saudi capital market regulator gives nod for 4 new listings on stock exchange

RIYADH: Saudi Arabia’s Capital Markets Authority approved First Milling Co.’s application for an initial public offering of 30 percent of its share capital on the Saudi Stock Exchange, also known as Tadawul.  

The company was the first of several flour milling privatizations in Saudi Arabia, sold to Raha AlSafi consortium for $540 million in 2020.  

The consortium was led by Saudi Arabian firm Almutlaq Group and also included Al Safi, Abunayyan Holding and UAE-based Essa Al Ghurair Investment, with investment bank Canaccord Genuity acting as a financial adviser, it was reported at the time. 

The CMA also gave the green light to Lumi Rental Co. to register and offer 16.5 million shares, or 30 percent of its share capital, on Tadawul. 

In December 2022, Seera Group Holding approved, during an extraordinary general meeting, the demerger of Lumi from the group in order to offer 16.5 million ordinary shares, or 30 percent of Lumi’s capital, on Tadawul.   

During the same month, Seera Holding submitted an application to the CMA for Lumi’s Tadawul IPO.   

Lumi is specialized in car rental in Saudi Arabia. It has 25 branches, of which nine are in the Kingdom's airports.   

In addition, CMA approved both Saudi Call Trading’s application to float 675,000 shares, or 15 percent of the company’s share capital, on the parallel market Nomu.  

Another firm that received CMA approval is Abdul Aziz Al-Tuwaijri Trading Co. which applied for the registration and offering of 600,000 shares representing 13.04 percent of the company’s share capital on Nomu. 

The approval for IPOs of the four companies is valid for six months, said CMA. 

This comes as companies from the Middle East raised some $21.9 billion through IPOs in 2022, accounting for more than half the total from wider Europe, the Middle East and Africa, according to Dealogic data.  


Alrasheed Greenhouses partners with Dutch firm Plantlab in Saudi food security boost 

Alrasheed Greenhouses partners with Dutch firm Plantlab in Saudi food security boost 
Updated 30 March 2023

Alrasheed Greenhouses partners with Dutch firm Plantlab in Saudi food security boost 

Alrasheed Greenhouses partners with Dutch firm Plantlab in Saudi food security boost 

RIYADH: Saudi Arabia will see a cut in the imports of leafy crops thanks to a new partnership between agricultural firms in the Kingdom and Dutch food products supplier Plantlab.  

As per the agreement, local production of such food in the Kingdom will be set at the highest international indoor farming standards, thus limiting imports of leafy greens into the Saudi market.  

This deal comes as the Kingdom seeks to improve its food security in line with Vision 2030 goals, as it promotes the diversification of domestic exports.

The partnership took place between the Saudi Greenhouses Management and Agri Marketing Co., also known as Alrasheed Greenhouses, and Plantlab, reported the Saudi Press Agency.  

The Saudi-Dutch collaboration reflects the Ministry of Environment, Water and Agriculture’s efforts to increase agricultural production in greenhouses, with SR4 billion ($1.1 billion) worth of investments planned until 2025.     

Ahmed Al-Ayada, the undersecretary of MEWA, attended the ceremony at the ministry’s headquarters in Riyadh.  

The partnership will also pave the way for enhancing the production efficiency of indoor farming, restricting irrigation water and energy consumption and trading foreign technology.    

In addition, it will shift the Saudi industrial sector’s paradigm by developing indoor farms using locally manufactured materials.  

Alrasheed Greenhouses is one of the largest agricultural production and consultancy firms in Saudi Arabia.    

It has been known for its dedication to food safety and biocontrol programs that drive the engine of the almost 75 hectares of greenhouses under its management.    

The firm develops environmentally responsible agricultural schemes, delivers agro-support services and renders technical advice while maintaining quality and sustainability.  

The Dutch company Plantlab, on the other hand, owns the biggest indoor farming facility specially designed for research and development.  

The company weighs heavily on the potential of the partnership to enhance the agricultural sector in the Kingdom generally and the indoor farming sector in particular.