Minerva envisions more opportunities in Arab countries
28 de novembro de 2017
São Paulo – Despite its relevant sales numbers to Arab countries, Brazil’s Minerva believes the region holds further opportunities. This Tuesday (28) at a meeting with investors in São Paulo, the company presented a map of several Middle East and North Africa countries that it envisions selling beef to.
Minerva CCO Iain Anderson Mars mentioned Lebanon, Algeria, Egypt, Jordan, Qatar, Saudi Arabia, Kuwait, Oman, Libya and the United Arab Emirates as prospective targets. He also referenced non-Arab nations including Chile, Colombia, South Korea, Switzerland and South Africa.
Kuwait and Oman were described as countries where beef consumption is strong and increasing rapidly. In Lebanon, consumption is strong, but doesn’t grow as fast. In Algeria, Egypt, Jordan, Qatar and Saudi Arabia, the volumes purchased are low, but demand is going up. Libya and the UAE are places where demand’s weak and its growth is sluggish.
Minerva has already secured a strong foothold in the Arab market. “The Middle East is very important to Minerva,” CEO Fernando Galletti de Queiroz said in reply to a question from ANBA.
Results made public by the company early this month show that the Middle East was Minerva’s premier export destination in the 12 months through September, having accounted for 24% of the company’s foreign sales revenue. In the preceding 12 months, the rate had been 20%. Asia went from number one to two.
Minerva has offices in Arab countries Algeria, Egypt and Lebanon, plus a recently opened one in Saudi Arabia. De acordo com Mars, no Líbano são comercializados os produtos da Minerva no Golfo e na Jordânia. The CCO discussed Minerva’s foreign offices strategy, stressing that these are necessary in order for the company to gain an understanding of each market. “We’ll enter a market and see what happens,” he said.
Mars presented the map of Minerva’s offices and beef industry opportunities after providing a quick overview of the global supply and demand scenario for beef. He said the amount of livestock being bred in major markets like Russia and China is going down, while supply is booming across South America.
Brazil is currently the second biggest beef exporting country in the world – India’s the first –, but Queiroz believes it will rise to the top next year. Australia ranks third, but the United States are poised to take its spot in 2018.
Demand for beef concentrates in Asia. Last year, the region accounted for 43.6% of beef purchases worldwide, with a 45.9% rate expected this year. Mars believes this will increase to 50% in less than four years’ time. The biggest Asian buyers are Vietnam, China, Japan, South Korea and Hong Kong.
Queiroz said Minerva handles 7% to 8% of global beef trade. He told investors about the company’s three-pillar strategy: increasing distribution, the number of places it exports to, and the number of places it manufactures from in South America.
“We enjoy a unique position within the beef industry,” said the CEO, adding that whenever a country stops buying, for instance, Minerva’s able to quickly find another market. The company sells to 100-plus countries and owns 26 slaughtering facilities in Brazil, Paraguay, Argentina, Uruguay and Colombia. Saudi fund Salic has been a Minerva stakeholder since 2015.
*Translated by Gabriel Pomerancblum