Dubai – The world’s leading meat processing company, Brazil’s JBS is keen on increasing its presence in the Middle East. This Wednesday (26th), at the Gulfood fair in Dubai, BS global chairman Wesley Batista told ANBA that the company is looking to increase the share of poultry exports in its overall revenues, and within this industry the Middle East is a priority. The region is Brazil’s premier chicken export target.
He said JBS plans on increasing its presence in the region over the next few years. In quarter three, 2013, the company posted R$ 24.2 billion in revenues. Export revenues stood at US$ 3 billion, and sales to the Middle East fetched US$ 265 million.
“There is no question that we have a tremendous focus on this region as concerns the company’s poultry sales expansion plan. The Middle East is a priority to us. We want to expand our presence in the region, to build our brand and to sell more product. We do no plan on operating locally, but rather to increase our sales and invest in our brands,” said Batista.
The businessman acknowledged the fact that another Brazil-based company, BRF, which owns of brands Sadia and Perdigão, is strong and well-established in the Middle East, but he does not believe the competitor’s being present will get in the way of his plans. “Sadia has been here for many years now, and they are quite strong in the Middle East. [BRF] is the leading Brazilian company in the Middle East, but we can grow too, and BRF is not our biggest challenge in the region. There is room for us to grow,” he said.
One of the company’s brands is Seara, whose products are on display at JBS’ Gulfood stand, and which was acquired last year from the meat company Marfrig. Other items in the company’s portfolio which are being offered to Arabs are the brands Swift, Friboi, Maturatta, Cabana Las Lillas, Pilgrim’s, Gold Kist Farms, Frangosul, LeBon, Pena Branca, Rezende, and Fiesta.
According to Batista, poultry sales to the Middle East and North Africa are on the way up, and should remain so for the next few months. On the other hand, beef sales have dropped because the Gulf’s leading buyer, Saudi Arabia, has embargoed imports of the product from Brazil.
In late 2012, the Brazilian government announced that an animal that died in the state of Paraná, in 2010, carried the causative agent of bovine spongiform encephalopathy, aka “mad cow disease,” although the animal did not develop the condition, and died from unrelated causes.
Several companies, including Saudi, banned imports of Brazilian beef. Most of them have reversed the decision, but not the Saudis. The Brazilian and Saudi governments are in talks to resume sales.
The executive believes now is the time to step up poultry exports, even though there are no set targets with regard to market share or brand presence. he said he wants his company to have a strong presence in the leading Middle Eastern markets, especially Saudi and Egypt.
Batista also said the Gulfood is a “very good” fair, considering the visibility it affords, and not only in the Gulf. “This is a very good, highly relevant fair, because Dubai is in the ‘middle of the world,’ and as such it attracts clients from emerging countries in Asia, like China and India, as well as European ones.”
*Translated by Gabriel Pomerancblum
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