BrazilRussia’s leading organizations for the export of meat and cars flocked here Georgia this week for the annual “poultry show,” which makes the case for deeper cooperation with its biggest protein competitor: USA
Brazilian firms are deeply entrenched in American meat production, largely through acquisitions that have given some of the biggest players a strong foothold in the market.
Pilgrim’s Pridefor example, 80 percent belongs to Brazil JBSa global meat powerhouse that also owns Golden Kist brand; both had large manufacturing operations in Georgia for decades.
But during the seminar organized by Consulate General of Brazil Wednesday evening at International exhibition of production and processingit was clear that small Brazilian firms were also looking to enter the US market with the help of a number of Brazilian private industry associations and government promotion agencies aimed at helping them enter the global market.
The event began with an overview of the industry associations accompanying the strong Brazilian delegation at the exhibition: ABIKWIFI representing an active pharmaceutical industry with nine companies, HUG highlighting the Brazilian engineering sector, which includes 8,000 manufacturers employing 400,000 people and ABPA, Brazilian Association of Animal Proteins.
Ricardo Santinpresident of ABPA, highlighted Brazil’s productivity gains and its role in feeding the world sustainably and securely.
Thanks to economies of scale, a favorable mix of clean energy and strict forest land use regulations (two-thirds of Brazil’s forests are still privately held or by government decree), Brazilian-produced meat can be shipped around the world and still contain less embedded carbon than the local option , Mr. Santin said. He cited outdated figures that already showed in 2008 that Brazilian chicken was being exported to United Kingdom be less CO2-intensive than what was done on site.
Brazil is a leading exporter of grains as well as proteins, accounting for about a third of the global market, compared to about 37 percent held by the US in the major categories of pork, beef, eggs and poultry. That is, the two largest countries Western Hemisphere per population to meet a staggering 70 percent of the world’s demand for protein exports, which appears to be in no danger of abating any time soon as the world population tops 8 billion, Mr Santin said.
Sometimes the two countries clash, but they can also cooperate, Mr. Santin said, both by trading with each other and fighting for acceptable global trade standards.
“There should be no borders for food,” Mr Santin said, noting that selfish protectionism could drive up prices for the poorest in a world where food is plentiful but unevenly distributed.
Brazil exported 14.3 million tons of chicken meat last year, making it the top exporter of poultry, but some countries maintain tariffs to prevent Brazilian imports from hurting less efficient local producers.
Mr Santin said Georgia is often remembered as a leading country in broiler production. He sits on the executive committee as vice president International Poultry Councilan industry association founded there Stone mountain offices as United States Poultry and Egg Export Council. Jim Sumner, USAPEEC of the President, is the secretary of the IPC.
Across the manufacturing value chain, Brazilian firms are looking to enter the US market, some through the Southeast.
During a one-minute pitch session, a representative from Vantecwhich is based in Xancere in a southern state Santa Catarina, Brazil, hinted that it will soon expand into the US, possibly via Georgia. The company, which manufactures equipment for recycling plants and sawmills, has recently moved into animal nutrition and exports its products to 13 countries.
in Brazil NewDrop Quimicaa Sao Paulo-founded cleaning chemicals supplier, has already entered metro Atlanta by establishing a warehouse in the Doraville as he learns the ropes of a market that is very different from home, he said Augusta Milani, who oversaw the expansion of the North America for the last six months.
One of NewDrop’s areas of activity is chemicals for disinfection of food production; in Brazil, they are cleaned by the company’s internal staff, while in the US this function can sometimes be outsourced to other service providers, which changes the company’s sales process, Mr Milani told Global Atlanta.
Those lessons, along with tax and human resources issues, are reasons why Brazilian companies would be better off setting up a local branch instead of trying to serve the U.S. from afar, he said. Fernando spur, in Miamirepresentative of the export and investment promotion agency Apex-Brazil.
“Having the operation, being here, can make the whole process a lot easier,” said Mr. Spohr, who traveled with Mr. Santin to IPPE when Brazil had a pavilion back in 2018. Apex-Brasil has incubation facilities in its offices in Miami, where about 100 companies and their products are located. Its intelligence unit recently completed a high-level research report on agribusiness opportunities in states like Georgia, California and Texas.
Danilo Palmieri from Atlanta Connect Solutions says that knowledge of the local landscape is especially important for Brazilian investors, given how different laws are in US states and how salaries and work cultures differ. Brazil’s leaders should come with “eyes, minds and ears” open, armed with a solid plan.
“The way people are guided here in the United States is very different from what they would be in Brazil,” Ms. Palmieri said, noting that many people don’t know that the questions they usually ask in an interview in Brazil can be asked here. are prohibited.
Ron Slotin, Strategy Director in Brazil Drummond Advisors in Atlanta, moderated a panel attended by the Consul General of Brazil, Luis Claudio Santos.
At the Global Consular Conversation event a week ago. Mr. Santos said his consulate will actively participate in developing trade ties wherever possible, including by inviting Brazilians to trade shows such as IPPE in Atlanta and beyond.
(Disclosure: Drummond Advisors sponsored coverage of Global Atlanta in Brazil last year.)