In January, wheat and meslin exports from Brazil to the Arab countries fetched USD 26.78 million, a record-high since 2017. They reached 124,715 tonnes, and top buyers were Saudi Arabia and Palestine. The figures are from the Market Intelligence department of the Arab Brazilian Chamber of Commerce (ABCC). According to consulting firm Tendências agribusiness analyst Felipe Novaes, the record high is part of a wider context. Factors include the Brazilian supply, which is high due to the harvest period, as well as the dollar appreciation, which makes the Brazilian product more competitive. There’s also a high demand in the North Africa and Middle East (MENA) region and a smaller supply from major producer countries.
On the Arab consumption, Novaes points out that the growth has occurred since last year. “From 2020 to 2021, the United States Agriculture Department (USDA) forecasts an average increase of 2.5% a year in consumption in the MENA region, where the Arab countries are,” he told ANBA. The rate is higher than it has been for the last five years, when consumption in the region grew by an average of 1.1% a year. According to the USDA, to meet its consumption needs the MENA countries must import more wheat. From 2020 to 2021, the average growth in purchases is expected to reach 4.6% a year.