We need to open markets for soybean meal , says Abiove

Posted by Marina

Brazil needs to reduce its soybean exports and increase sales of soybean meal and oil as a way of adding value to agricultural production and stimulating industries in the sector, warned the representative of Cargill Brasil and president of the Brazilian Association of Oil Industries. Vegetables, Andre Nassar, in a public hearing promoted on Wednesday (30) by the Committee on Agriculture and Agrarian Reform (CRA), informs official network of the "Senate".

According to Nassar, in 1981, of the total exports of soy and derivatives, 87% corresponded to soybean meal, a product with higher added value, and the remaining 13%, soybean. Already in 2017, he explained, the situation was reversed, with soybean exports corresponding to 81% of the total sold abroad.

"Of course you have the meat part and you've eaten the bran." But clearly we need to open market for bran also so that we can stimulate our industries. We now have the capacity to increase soybean crushing for bran production by 10 million tons, ”he said.

Nassar noted that China, currently the largest importer of Brazilian cereal, predominantly buys soybeans.

The Solutions Manager of Banco do Brasil's Foreign Trade Unit, Alessandra Aranda, presented the products and services that the bank offers in the foreign trade area for soy and derivatives. The head of the Department of the Agrifood and Biofuels Complex of the National Bank for Economic and Social Development (BNDES), Mauro Arnaud de Queiroz Mattoso, spoke about the importance for the country of public financing for the agribusiness sector. According to him, 21% of Brazil's gross domestic product (GDP) comes from agricultural production.

Also participating in the debate was the manager of the Department of Agribusiness and Food of the Financier of Innovation and Research (Finep), André do Nascimento Fernandes.

Bilateral Agreements

At a second table, representatives of federal government agencies analyzed the bilateral agreements that Brazil recently entered into with several countries and trade blocs.

Director of Trade and Trade Negotiations at the Ministry of Agriculture, Livestock and Supply (Mapa), Ana Lúcia Gomes spoke of the trade agreement between Mercosur and the European Union, which was announced at the end of June. According to her, in the agreement, the European Union should release 82% of trade in agricultural products within ten years, with excellent benefits for Brazil in the negotiation of products such as fruits, roasted coffee and instant coffee, sugar , ethanol , among other goods.

The General Coordinator of Foreign Trade Negotiations of the Ministry of Foreign Affairs, Paula Aguiar Barboza, stressed the importance of bilateral trade agreements for Brazil. As he explained, in the 1990s there were only 70 bilateral agreements that accounted for less than 30% of the international trade flow. By the end of 2010, there were 400 trade agreements already accounting for over 60% of international trade flows.

- The Brazilian government in the face of these numbers clearly saw that we were not going to change our participation in the World Trade Organization [WTO]. We kept the WTO priority as we still do. But we would have to enter this world and increase our network of bilateral agreements, ”he said.