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Considered Santa Catarina's main export product, chicken meat was shipped to more than 1 million tonnes in more than 135 countries in 2018 alone, generating $ 1.8 billion in revenue US. This week, Saudi Arabia announced a new list of Brazilian establishments authorized to sell the product in the country, bringing to 25 the number of eligible companies. In Santa Catarina, 14 factories were excluded from the Saudi embargo, leaving only five of them.
Interview with Ricardo de Gouvêa, Secretary of Agriculture and Fisheries
News of the day : Of the 19 industrial facilities of SC authorized to export meat to Saudi Arabia, 14 were excluded from the embargo.
Ricardo de Gouvêa : Of the 14 factories, the vast majority did not export properly to Saudi Arabia. Some of them had a very small volume. This was the criterion for the withdrawal of the authorization, because it was already factories which had the very old qualification and which did not export or whose volume was very low. Saudi Arabia has sought to concentrate Brazilian exports in 25 companies – there are five in Santa Catarina, the volume of which is larger – and those exporting the largest volume. According to our survey, most of the 14 companies that lost the license were purchased or incorporated – three of them were inactive. There are still some that served other markets. The impact will not be as significant as the large volume of exports is maintained in the five
NA : What are the plans to circumvent this export embargo? How can a mission be accomplished by the entities of Santa Catarina to reverse the situation in Saudi Arabia?
Gouvêa : There is still movement to try to increase exports. In the case of companies that have been decommissioned, I know that the poultry and pork industry is taking care of it. As this is a market issue, the Brazilian Animal Protein Association (ABPA) should address this issue and eventually try to rehabilitate companies that have an interest in exporting again. This is not a technical or sanitary restriction. If that were the case, both the federal government and the state would have something to do.
ND : How has the situation in refrigeration facilities changed since October 2018, when Saudi Arabia's technical mission was sent to Brazil?
Gouvêa : The mission was about to be realized evaluation. They came back and did this badysis. From what we learned from the ministry itself, this badysis was done in order to focus on the factories that were actually exporting.
ND : Since Saudi Arabia is the third largest buyer of Santa Catarina chicken meat, how did the relations between the state and the Arab country go?
Gouvêa : In fact, Santa Catarina was one of the pioneering states in the export to Saudi Arabia several years ago. The companies here have excellent relations and know very well the market of the Arab world. The relationship and the market are very well aligned with the needs of Saudi Arabia.
ND : Did the Saudi embargo affect the poultry meat market of Santa Catarina in recent months?
Gouvêa : Such a reduction can always affect companies, for Saudi Arabia, may be important to society. Some impact must have, but the amount of poultry sector was not so great. Indeed, the companies with the largest volume have been kept. I believe this impact will be absorbed by the option of other markets or by seeking a rehabilitation in the market itself.
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