Minerva’s exports to the Middle East totalled around US$263.5m for the 12 months up to 30 June, up 6.5% from the same period last year, excluding exchange rate fluctuations, but a far cry from the company’s 33% overall growth in exports for the period.
Redirected resources
“The share of the Middle East in Minerva’s exports fell from 20% in LTM2Q14 to 16% in LTM2Q15. In the last 12 months, the company redirected part of the exports to other regions with higher profitability such as Asia and North Africa. The highlight has been the shipments to Iran, whose fresh beef imports have consistently increased in recent quarters, with special attention to 2Q15,” said a Minerva financial report for the quarter.
Africa imported around US$280m-worth of Minerva’s meat in the year to the end of June, 17% of the firm’s exports, with the financial report noting: “The region’s main destination continued to be Egypt, whose revenue increased by 59% over LTM2Q14.”
“It is important mentioning the significant growth in Brazilian fresh beef exports to Egypt and Iran, whose share increased from 7% to 13% and from 5% to 12% in 2Q15, respectively,” the report added.
Region boosts flagging exports
Meanwhile for JBS, the world’s largest beef exporter, the Middle East and Africa was a relative high-spot in a quarter which saw the firm’s total export revenue at US$3.9bn, down 7.7% compared to the year before. The company’s exports to the region rose 4.9% to around US$560m, making up around 14% of its foreign sales.
The quarter marks a reversal for the company’s export volumes from the first three months of the year, when JBS grew its export revenue by 13% year-on-year, but with sales to the Middle East and Africa growing more slowly at 2.8%, bringing in US$475.3m.
Overall, JBS had a mixed second quarter, with revenues up 34% year-on-year at US$11.6bn, but profits down 68% to US$23m. The company’s management blamed the fall in profits on currency fluctuations – the value of the Brazilian Reais compared to the US dollar has fallen 38% within the last 12 months, and continues to be highly volatile.