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Prices increased 28.5% on average, much more than volume shipped, which is up 2.1%

07/14/2022


Cargo handling in Paranaguá: exports of soybeans, meal and oil remained at top of export list — Foto: Divulgação/Claudio Neves/Portos do Paraná

Cargo handling in Paranaguá: exports of soybeans, meal and oil remained at top of export list — Foto: Divulgação/Claudio Neves/Portos do Paraná

Brazil’s agricultural exports remained strong and yielded $15.7 billion in June, up 31.2% year-over-year, according to data from the Secretariat of Foreign Trade (Secex) compiled by the Ministry of Agriculture. The ministry says this was a new record, once again influenced by the high prices of commodities in the international market.

In a note, the ministry stressed that while it dropped 4.7% between May and June, the World Bank’s food price index rose 22.8% in June year-over-year and that a similar move was seen in the food price index calculated by FAO, the UN’s food and agriculture branch. “In other words, despite an apparent slowdown in food inflation, as captured by both indices, international prices remain at very high levels.”

In the case of Brazilian agricultural exports, prices rose 28.5% year-over-year on average – much more than the average volume shipped (2.1%) – which ensured the announced result. As imports grew 19.8% in this comparison, to $1.5 billion, the sectorial surplus increased by 32.6% and reached $14.2 billion last month. As for imports, the highlight was the 187% growth in fertilizer purchases, to $3.3 billion, due to a 17.5% increase in volumes and a 144.4% higher average price.

The exports of soybeans and soybean products (meal and oil) remained at the top of the export list. Shipments increased by 31.9% in June, to $8.1 billion. “Because of the smaller harvest in 2022, soybean exports retreated to 10.1 million tonnes from 11.1 million tonnes in June 2021 (-9.2%). The 34.4% increase in the soy price, however, allowed for an expansion of 22.1% in the exported value of the oilseed, which reached a record $6.32 billion for the month of June,” the ministry said. China was the destination of 64.5% of the raw material exports, even with a drop of 8.2% in purchases compared to June last year.

Brazilian meat shipments (beef, chicken, and pork) totaled $2.4 billion in June, up 32% year-over-year. Beef shipments grew 36.9%, to $1.1 billion, and China was also the leading purchasing country, with 65.9% of the total value. Chicken sales, also driven by China, increased 46.7% to $932.1 million, a record for June, while pork sales were 19.1% lower ($216.6 million).

Among the other groups of products most exported by the Brazilian farmers, forest products increased by 23.1%, to $1.5 billion, sugar and ethanol advanced by 0.3%, to $1.1 billion, and coffee rose 73.6%, to $788.7 million. In total, China was the destination of 36.3% of the revenue from Brazilian agricultural exports in June, or $5.7 billion.

Thus, in the first half of the year, Brazilian agricultural exports reached $79.3 billion, 29.4% more than in the same period last year. Imports grew 8.5% in comparison, to $8.1 billion, and the surplus was 32.3% higher ($71.2 billion).

From January to June, shipments of soybeans and soybean products increased by 30.1%, to $37.8 billion; meat products climbed 35.3%, to $12.2 billion; forest products rose 29.1%, to $8.3 billion; sugar and ethanol declined 6.9%, to $4.3 billion, and coffee exports were 55.5% higher ($4.6 billion). In the first half of the year, China absorbed 35.6% of Brazilian agricultural exports ($28.3 billion).

*By Fernando Lopes — São Paulo

Source: Valor International

https://valorinternational.globo.com/

The consequences of the work-to-rule campaign of federal agricultural inspectors in the production, export and import of agribusiness products and inputs are beginning to impact players in the sector. Leaders report “concern” about delays in the sanitary certification or customs clearance processes, but the impacts are still unknown.

Cargoes of agricultural products, some destined for China, are stopped at ports. There are already lines of trucks at border depots in Foz do Iguaçu (Paraná) and Dionísio Cerqueira (Santa Catarina) with items imported from Argentina and Chile.

Exporters are pressuring the inspectors and consider the measures as “procrastinating.” A letter from the Brazilian Beef Industry and Exporters Association (Abiec), sent to member companies last week, says that the essence of the auditors’ mobilization “is to create even more encumbrance and stoppages.”

In September, during an operation by the inspectors, Abiec obtained a provisional ruling to force the continuity of “services of inspection of industrialized products and the issuance of health certificates” until the judgment of the writ of mandamus. According to the organization, the decision also supports companies in the work-to-rule campaign. The letter, obtained by Valor, states that Abiec associates should guide any federal agricultural tax auditors “creating difficulties in the fulfillment of its legal obligations” to resume his ordinary activities with base in the court order.

“When pointing out difficulties to the production, the association itself does not realize that the biggest difficulty is its intimidating posture. After all, the inspectors are under no obligation to comply with a court decision received through unofficial means, such as, for example, the statement prepared by the association,” says a letter signed by Janús Pablo, head of Anffa Sindical, the auditors’ union. The union says that the mobilization is not a strike and that it strictly follows the principle of legality. Any “intimidation” of private agents must be reported, according to the text.

“We are worried. While we support the auditors’ right, we need to maintain production and export. I’m sure the auditors will be sensitive to understand the need to avoid delaying production too much,” said Ricardo Santin, president of the Brazilian Animal Protein Association (ABPA).

There are still no official surveys on the impacts of the work-to-rule action. Auditors heard clarify that the intention is not to harm society, but to be able to sensitize the government to improve the category’s working conditions. The Ministry of Agriculture did not immediately reply to a request for comment.

In a meeting at the end of December, professionals affiliated with the Anffa Sindical decided not to strike or stop working. However, they adopted the work-to-rule campaign, in which they comply with the statutory deadlines for the activities and are limited to working eight hours a day, without carrying out extra hours or shifts.

The measure is a way of putting pressure on the federal government for salary adjustments and new public hiring tests to make up for the deficit in civil servants. Agricultural auditors are also studying handing over positions, similar to what other mobilized federal categories want, such as Central Bank and Federal Revenue employees.

Upon returning from the year-end break at the Ministry of Agriculture earlier this week, the employees told their managers that, following the statutory deadlines and fulfilling the eight hours of daily services, from Monday to Friday, the next export certificates would only be issued in five days.

The inspectors continue to act within the law, according to the union, following the deadlines set out in rules and regulations, but the high demand and lack of civil servants hinder the processes. “If meatpackers inspectors limit themselves to working eight hours a day, it will already cause inconvenience. As it is, it would be enough to comply with the procedural deadlines and the working day to cause delays,” another source told Valor.

The union calls for the end of “strenuous workdays, of unpaid overtime, at the end of continuous and exhausting work from Sunday to Sunday.” The category does not know how many overtime hours were worked. The Ministry of Agriculture stopped releasing the balance. Anffa requested it by letter, but got no answers.

Source: Valor international

https://valorinternational.globo.com/