Brazil is being presented with a major economic opportunity that could push the South American country into elite territory for economic development and growth.
That's according to Seneri Paludo, Brazil's secretary of agricultural policy, who stated that 90 meat plants in Brazil have been approved to export beef, chicken and pork to Russia, which has instituted a ban on importing these and other agricultural products from the U.S., Canada, Australia and countries that represent the European Union, Reuters reported.
Last month, the U.S., along with the North Atlantic Treaty Organization, announced a trade embargo on several goods and services sent to Russia. In retaliation, Russia Prime Minister Vladimir Putin instituted an import ban on food products being sent from countries that comprise NATO as well as the 28 nations that make up the EU.
With the trade restrictions still in place, Putin and members of his administration have met with several Latin American companies in an effort to find alternative food providers. Brazil was among those countries that's looking to expand its economic dealings with Russia, Reuters revealed, based on collected trade data.
Brazilian trade with Russia on the rise since January
Through the first six months of the year, Brazil has sent a large amount of foodstuffs to Russia, with beef exports topping them all, the news source gleaned from recent Brazilian trade statistics. Additionally, though it sends most of its soybean resources to China, nearly 350,900 tons of soybeans has been sent to Russia through the first half of 2014.
"Russia has huge potential as a consumer of agricultural commodities," said Paludo to an assemblage of reporters recently. He added that current trade conditions are very similar to what happened 10 years ago, when China began accepting food staples and commodities from more countries, which included Brazil.
As food organizations in Brazil take advantage of a new major trade partner, greater business opportunities may become available. However, companies looking to expand in the region will need to stay abreast of all new regulations and compliance measures.
For example, every business in Latin America is - or soon will - be required to implement e-invoicing, no matter what type of good or service that's provided. This heightened regulatory climate also brings an increased need for advanced cloud computing technologies - such as the hybrid cloud structure Invoiceware has developed - to maintain regulatory compliance.