Prices increased 28.5% on average, much more than volume shipped, which is up 2.1%
07/14/2022
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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