Agribusiness exports fall 3.6% in value in the 1st. half

Agribusiness exports in June were driven by shipments of meat (beef, pork and chicken) and corn. According to the Secretariat of Commerce and International Relations (SCRI) of the Ministry of Agriculture, Livestock and Supply (MPLS), sales represented US $ 8.34 billion, 8.9% decline in foreign exchange compared to June 2018, due to the fall of 9.5% in the price index of agricultural products exported by Brazil. Agribusiness participation in the Brazilian trade balance in June stood at 46.3%.

Exports of beef increased sharply in June 2019 compared to the same month in 2018. Exports amounted to US $ 1.32 billion in meat (+ 84.8%). A large part of this expansion was due to the increase in meat exported (+ 72.2%), although the average export price of meat also increased (+ 7.3%). All the main types of meat exported by Brazil had an increase in the value exported, except for turkey meats (-20.2%).

The main meat exported was chicken meat, with US $ 629.95 million (+ 76.7%). Foreign sales of beef rose 93% to US $ 514.41 million (+ 93%). Pork had the largest increase among meats, rising 112.1% to US $ 136.30 million.

Maize, which increased 932% in sales, reached US $ 272 million, with shipments of 1.4 million tons of grain. The main buying countries were Vietnam (US $ 85.1 million), Iran (US $ 78.2 million) and Japan (US $ 24.4 million).

Result of the semester

In the semester, agribusiness exports totaled US $ 47.69 billion, 3.6% lower than in January to June 2018, of US $ 49.48 billion. Foreign sales of meat (beef, pork and poultry) and maize had relevance in the first half of the year (January to June), with an increase in value and quantity exported.

According to the SCRI report, meat exports rose from US $ 6.32 billion to US $ 7.42 billion (+ 17.5%), mainly for China (US $ 1.4 billion), Hong Kong (US $ 947 million) and the United Arab Emirates (US $ 515.4 million).

Exports of beef totaled 826.1 thousand tons or equivalent to US $ 3.11 billion in foreign sales (+ 16.3%) in the first half of this year.

Exports of poultry, the main meat exported by Brazil in value, were US $ 3.39 billion (+ 19%) between January and June 2019. Foreign pork sales reached US $ 698.53 million ( + 26%) in the same period of analysis.

Brazil exported 9.3 million tons of corn in the first half, with currencies of US $ 1.7 billion (+ 100%), mainly for Iran (US $ 470.3 million), Vietnam (US $ 288, 2 million) and Taiwan ($ 152.5 million).

Agribusiness exports in the first half were US $ 47.69 million, down 3.6%. This is the fifth largest exported value of Brazilian agribusiness for the period. The amount exported between January and June 2019 was exceeded only in the following years: 2013 (US $ 49.55 billion), 2014 (US $ 49.10 billion), 2017 (US $ 48.13 billion) and 2018 (US $ 49.48 billion).

There was a drop of 7.1% in the price index of agribusiness products exported by Brazil and there was a 3.8% expansion in the export quantum index in the period under study. For SCRI analysts, part of the fall in prices was offset by an increase in the volume of products exported by Brazil.

Imports of agricultural products also declined 1.2 percent to $ 6.96 billion in the first half of this year. The agricultural balance in the semester was a surplus of US $ 40.7 billion. The participation was 43.4% of the total Brazilian exports.

Posted by: Marina Carvejani