An analysis of the Dubai Chamber of Commerce and Industry revealed that the exchange rate of the dirham against the Brazilian real rose by 40% during the past five years, which led to an increase in demand for Brazilian meat, and a major shift in the red meat market in the UAE.

The analysis indicated that the red meat market in the UAE is witnessing some major shifts in consumer choices, as previously in 2014, live cattle: (lamb, goats and cows) accounted for about a quarter of the country's imports of red meat, but by 2018, that share had decreased To less than 10%.

Emirates imports

The imports of the UAE from red meat products: (fresh, chilled and frozen meat and live livestock) reached 221 thousand tons in 2018, and 39% of this amount was frozen beef, 28% of lamb and goats are fresh, chilled and frozen, and 24% of beef Fresh and chilled, while the share of live livestock is only 9%.

Dubai Chamber of Commerce and Industry data revealed that red meat imports increased by 11% in 2018, compared to 2017 (221,000 tons, compared to 199,000 tons). The analysis of the aforementioned figures showed a conflict of market dynamics. While imports of live livestock declined sharply, there was a sharp increase in imports of frozen beef. The analysis stated that this can be explained by changing the mood of consumption among the residents of the Emirates and the region, and this is reflected in the replacement of high-priced live cattle with frozen beef with the most competitive prices.

Local farms

And in addition to that, the local farms in the Emirates have increased their production capabilities, to meet the local demand for live livestock, especially goats and sheep, which are usually slaughtered during Eid al-Adha, indicating that the boom in re-exports activities in Dubai is also a major factor, contributing to Growth of imports of frozen beef.

The analysis traced the source of the increase that occurred in the imports of frozen beef in the UAE during 2018, which amounted to 53%, compared to the previous year, as it confirmed that most of them came from one market, Brazil, as it supplied the state about 39.7 thousand tons, representing an almost fourfold increase At the level of the previous year.

India ranked second with 32.8 thousand tons, followed by Australia in the third place with about 5,000 tons of frozen beef. Other sources, which were among the top five suppliers of these products, included: the United States at about 4.2 thousand tons, and Saudi Arabia at 1.7 thousand tons.

The analysis attributed the increase in sales of Brazilian beef in the UAE, which occurred in recent months, to an increase in its price attractiveness, due to the decrease in the exchange rate of the Brazilian currency against the dirham by 40% over the past five years.

Frozen meat

Dubai Chamber of Commerce and Industry data for the first half of this year 2019 showed the continuation and even acceleration of the previously mentioned trend, as the UAE's imports of frozen beef from Brazil reached 44.4 thousand tons, compared to 5.3 thousand tons in the first half of 2018. This is considered The level is already higher than what was imported from this trading partner in the full 2018.

In addition to the increasing popularity of frozen beef in the domestic and regional markets (i.e. re-exports), as a cheaper alternative to imports of live livestock, there are other factors that have fueled this growth, such as Brazil having certified procedures for halal certification, as well as certain external developments, such as drought The recent floods in Australia have affected its livestock and beef exports.

It seems that the competitive price that Brazilian beef enjoys, has also attracted other Arab markets, as sales of these products to all Arab countries have increased by 47%, so far this year, according to the Brazilian Chamber of Commerce.

«Meat of the cows of the Nile

The Dubai Chamber of Commerce and Industry analysis confirmed that there is a specific species of cows, which is the most prevalent in Brazil (80% of the total cattle breeds), is what is known as "nurse cows meat", which attracts many buyers from Arab markets, as it is less fat than European beef.

The analysis confirmed that the Brazilian currency exchange rate is still favorable, and represents an opportunity for companies operating in the field of import and re-export in the UAE, as well as food processing companies, to benefit from the cheap prices of Brazilian beef specifically, in addition to other food items that have Halal certificates such as chicken and cheese.

221

Thousand tons, imports

Emirates of products

Red meat

In 2018.