The volume of agribusiness products exported by Brazil from January to September this year grew by 6% compared to the same period in 2018, reaching a record quantity, according to data from Cepea (Center for Advanced Studies in Applied Economics), from Esalq/USP. This increase was linked to the growth in sales of meat, corn, cotton, ethanol and coffee.
Revenue in dollars, however, fell by 4%, totaling US$ 72 billion from January to September 2019. According to Cepea researchers, this result is due to the drop in average prices paid for agribusiness products shipped. In Real, revenue fell even more intensely, at 15%, which is due to the effects of both the fall in prices in dollars and the appreciation of the Brazilian currency.
EXPORTED PRODUCTS – After registering significant increases in 2018, external sales of products from the soybean complex declined in 2019. Corn and meat have registered strong growth in shipments. In the case of cereals, the quantity exported from January to September this year more than doubled compared to the same period in 2018. As for meat, the increases in values were 9% for beef, 12% for pork and 3% for poultry. It is noteworthy that the increase in foreign meat sales has been influenced by the health crisis in China, resulting from the African Swine Fever (ASF) episode.
DESTINATION – China remains the main destination for Brazilian agribusiness exports, with a share of 32% of the total sold by the sector, followed by Euro Zone countries (15%) and the United States (7%).
EXPECTATIONS – Even though the volume shipped by Brazilian agribusiness continues to expand in the last quarter, 2019 revenue should be lower than that obtained last year, which, it is worth remembering, was a record. This is because the global supply of agribusiness products at high levels has put downward pressure on external prices this year.
Overall, the Brazilian economy has shown good macroeconomic fundamentals, with inflation on target and a reduction in interest rates. It is worth remembering that lower interest rates can favor investments in agricultural production, which, in turn, contributes to the Brazilian supply of food, fiber and energy continuing to expand.
Source: Notícias Agrícolas
