Brazil seeks beef export approval, eyes more investment in Bangladesh

Highlights

• Brazil is the world's largest producer of beef, poultry
• Brazil proposed exporting beef to Bangladesh at $4.50 (Tk495) per kg in Apr 2024
• Permission to import beef was denied during the previous regime
• Bangladesh imports $3b worth of goods from Brazil, exports $1b last year 

Brazilian Ambassador to Bangladesh Paulo Fernando Dias Feres today (8 January) said Brazil has shown interest in exporting beef to Bangladesh for several years.

"It has not been possible to export beef from Brazil to Bangladesh due to bureaucratic complications and lack of certification during the former regime in Bangladesh," the ambassador said at a press conference in the capital.

The event was organised by the Brazil Bangladesh Chamber of Commerce and Industry (BBCCI) ahead of the "Made in Bangladesh Exhibition" to be held in São Paulo, Brazil, from 15-18 June.

The ambassador also spoke about his struggles during the previous government's tenure to obtain certification or approval.

Brazil is keen on expanding its investment portfolio in Bangladesh, he also said. 

Most recently, in April last year, the Latin American country proposed exporting beef to Bangladesh at $4.50 per kg (equivalent to Tk495 at that time's exchange rate).

Diplomatic sources indicated that the matter was to be discussed during a two-day visit to Dhaka by Brazil's Foreign Minister Mauro Vieira that month.

When Brazil proposed exporting beef to Bangladesh, the price of beef in Dhaka's markets was around Tk800 per kg. Currently, beef is being sold in the capital's markets for Tk650 to Tk700 per kg.

At the press conference, the ambassador noted that Brazilians consume an average of 100 kg of beef per person annually, compared to much lower rates in Bangladesh. Also, while a cow in Brazil produces an average of 45 kg of milk per day, the figure in Bangladesh is around 7-8 kg.

Challenges in import-related issues

The ambassador said Brazil is the world's largest producer of beef and poultry. 

"Many Muslim-majority countries allow beef imports from Brazil, but Bangladesh does not currently permit such imports. Brazil has been making efforts to secure this approval."

"I met the then-commerce minister last April when Brazil proposed exporting beef to Bangladesh. After visiting the livestock ministry, I sought permission from the commerce ministry. The officials accompanying the commerce minister provided various regulations in Bengali. Ultimately, permission to import beef was not granted," he added.

He noted that certification issues remain a challenge in this sector but expressed hope that import-related issues between the two countries would soon be resolved.

Brazil aims to enhance investment in Bangladesh

Ambassador Fernando said Brazil not only aims to enhance trade relations with Bangladesh but also wants to invest in the country. Brazil and Bangladesh could collaborate in various sectors, including agriculture, pharmaceuticals, and renewable energy.

He described his country as a "powerhouse" in agricultural trade and suggested that Bangladesh could benefit from Brazil's expertise in this field. 

"Thus, Brazil can assist Bangladesh not only by exporting beef but also by transferring technology to help boost local production," he said, adding that the private sector must also step up in this regard.

The ambassador added that Brazil has a universal healthcare programme under which the government provides free medicines to its citizens. To meet this demand, the Brazilian government procures large quantities of pharmaceuticals, presenting an opportunity for Bangladeshi pharmaceutical companies. 

Made in Bangladesh Expo 

At the press conference, organisers expressed hope for over 100 companies to participate in the Made in Bangladesh Exhibition in São Paulo, Brazil, from 15-18 June this year, showcasing products including ready-made garments, pharmaceuticals, leather, and textiles.

The BBCCI will host the exhibition to promote exportable goods, diversify markets, strengthen bilateral trade, and facilitate networking in Latin America, particularly Brazil. 

Emphasising the immense potential for deepening trade relations between the two countries, ambassador Fernando said, "This initiative provides a platform for businesses to showcase their excellence and forge meaningful partnerships. I am confident this event will further enhance mutual understanding and pave the way for greater economic cooperation." 

During the press conference, Md Saiful Alam, vice president of the BBCCI, highlighted the chamber's commitment to advancing bilateral trade and investment. 

He said imports from Brazil to Bangladesh amount to $3 billion, but exports from Bangladesh to Brazil were only $1 billion last year.

Presenting the keynote address, Md Joynal Abedin, secretary general of the BBCCI, described the expo as a bridge between cultures and commerce. 

"With bilateral trade between Bangladesh and Brazil valued at $2.53 billion in 2022, the potential for exponential growth is undeniable. The expo offers a platform to explore synergies, such as Bangladesh's jute aligning with Brazil's sustainability goals and Brazilian industrial equipment supporting Bangladesh's industrialisation," he said.