After reaching record volumes last year, shipments of Brazilian agribusiness products remain firm in 2019. According to research carried out by Cepea (Center for Advanced Studies in Applied Economics), at Esalq/USP, from January to April this year, exports (in quantity) of Brazilian agribusiness products grew 8% compared to the same period in 2018.
Meanwhile, revenue in dollars grew by just 0.3% in the same period. In this case, Cepea researchers point out that it was the drop in average prices in dollars that prevented the sector from achieving higher revenue in the first four months of this year. In addition, the appreciation of the national currency reduced the attractiveness of Brazilian agricultural sales. In this sense, it was the volume exported that kept the sector's revenue in dollars at a positive level at the beginning of 2019.
Exported products
When comparing the first four months of this year with the same period in 2018, cotton lint was the product that registered the most significant increase in shipments, of 75%. External sales of corn and coffee also showed significant growth, of 42% and 32%, respectively.
Cepea researchers indicate that the year has been promising for cotton, corn and meat. Meat is expected to continue to show increases in foreign sales, especially to Asian countries. In the case of cotton, Brazilian exporters have achieved second place in the ranking of international sales of the product.
Destination
China remains the sector's main trading partner, but its exports are heavily concentrated on soybean products, particularly soybeans. Europe is the second largest destination for agricultural products, and the United States is the third. Countries in the "other" group also have a significant share of 30% in total Brazilian exports, particularly Asian countries.
2019
This should be another year of good grain harvest, which should keep the availability of products high, both for domestic consumption and for export. Exporters should remain attentive to the trade dispute between China and the United States, given that this context favors Brazil, which can maintain a larger share of exports of agricultural products to China, including for the meat market. On the other hand, prices on the international market have been falling.
The effect of the exchange rate must also be taken into account. The Real has been depreciating more sharply in recent months, which helps to maintain the attractiveness of Brazilian products in the foreign market, favoring the growth of export volume. If the national currency remains depreciated, the sector's revenue in Real may continue to grow in 2019.
