The Saudi authorities continued to impose further restrictions on its exports of Brazilian poultry after banning imports from 11 factories.
According to the Brazilian meat packing company BRF, on Tuesday, the Saudi authorities have decided to reduce the validity of frozen poultry to three months, compared to the previous limit for a full year.
BRF said in a disclosure that it is working on assessing the financial impact of the new Saudi restrictions, noting that the Saudi authorities have informed the World Trade Organization of the change, and that the company will consult with the authorities on measures that can be taken in light of the organization’s rules.
BRF said members of the trade-related organization affected by the measure have 60 days to comment.
The new restrictions come on the heels of Saudi Arabia’s announcement last week of banning imports from 11 poultry factories in Brazil without giving an explanation, but BRF said its factories were not affected.
The Brazilian government had previously said it had started talks with Saudi Arabia about the ban.
Banning 11 factories
On May 7, a joint statement from the Brazilian Ministries of Agriculture and Foreign Affairs said that Saudi Arabia had banned imports from 11 poultry meat factories in Brazil, “without prior notification or justification for the decision.”
The Saudi Food and Drug Authority said imports from seven factories of GBS, the world’s largest meat company, were to be stopped from May 23.
ABBA, a consortium that represents meat processing companies in Brazil, said it supports the Brazilian government’s efforts to understand the Saudi decision as the long-term importer of Brazilian meat.
For a while, Arab countries that import products compatible with Islamic law have sought to reduce their imports while supporting local production of meat.
A huge Saudi project
A few days ago, the Saudi “Almarai” company announced the largest investment for a food company in the Middle East, with the aim of enhancing food security for Saudi Arabia, thus contributing to the realization of Vision 2030.
Almarai has allocated 6 billion and 600 million riyals to double its poultry production within 5 years, which will contribute to reducing the food import bill for Saudi Arabia.
Brazil’s Arab exports
Brazil’s exports to Arab countries increased by 22.5%, amounting to $ 2.91 billion during the first quarter of 2021.
The Arab Brazilian Chamber of Commerce stated in a statement that Saudi Arabia topped the list of the largest Arab countries importing Brazilian goods during this period, with exports to Saudi Arabia amounting to 526.16 million dollars, while Bahrain came in second place with a value of 406.36 million dollars, followed by Egypt with a value of 379.26 million dollars. , And the UAE with a value of $ 352.2 million.
The most important Brazilian exports to the Arab region were iron ore, and food products (sugar, poultry, beef and grains), while sales of soybeans and corn recorded a record high.
At the same time, Arab world exports to Brazil rose to $ 1.31 billion during the same period, an increase of 11.24% compared to the same period last year.