Despite Crisis, Emirates, Indian and Thailand Are Buying More from Brazil

Brazilian wood Brazilian exports of agribusiness products totaled US$ 6.287 billion, in July, which represented a reduction of 20.7% over the same period last year. However, if sector foreign sales dropped to most economic blocs and regions, to some countries, sales posted significant growth. This is the case with the United Arab Emirates (UAE), Saudi Arabia, India, Thailand and Indonesia.

The Emirates, for example, in the period analyzed, boosted imports of Brazilian agribusiness products by 77.5%. According to the Ministry of Agriculture, Livestock and Food Supply, in July this year Brazil exported to the Arab country US$ 121.22 million, against US$ 88.72 million in the same month in 2008. With this, the participation of the UAE in Brazilian exports rose from 0.9% to 1.3%.

In the accumulated result for the period from January to July this year, agribusiness trade balance figures show that sales to the UAE generated revenues of US$ 503.2 million, against US$ 388.12 million in the same period last year. That is, growth of 29.6%.

In the ranking of main importers of the Brazilian agribusiness productive chain, Saudi Arabia is in the 13th position, answering to 2.3% of Brazilian exports to the world. From January to July this year, Brazil exported to the Saudis US$ 871.47 million, against US$ 739.81 million in the seven first months of 2008, growth of 18.6%. Sales to Saudi Arabia last month, when compared to July, grew 1.8%, resulting in revenues of US$ 168.29 million.

If foreign sales to the Middle East and Africa grew 7.2% and 0.3%, respectively, agribusiness exports presented a reduction to most economic blocs and regions.

Last month, sales to Asia dropped 12.9% when compared to July 2009. In the period analyzed, the European Union reduced Brazilian agribusiness product imports by 24.3%; the European Union by 30.9%, the Aladi by 39% and the Mercosur, by 31.3%.

Sectors

The trade balance in July also shows that the sectors that presented positive rates of growth were the sugar and alcohol complex (10.9%), tobacco and its products (15.4%), live animals (14.8%) and bee products (32.8%).

However, most sectors presented lower export values: the soy complex (-22.1%), meats (-27.6%), forestry products (-37.3%), coffee (-8.4%) and leather and its products (-33.9%).

The locomotive of Brazilian exports, the soy complex (grain, chaff and oil) registered a negative performance last month, with a reduction of 22.1% in revenues, which totaled US$ 2.204 billion.

The values of soy in grain that were exported dropped when compared to July 2008 (from US$ 3.347 billion to US$ 1.468 billion). The volume exported dropped 15.9% and prices dropped 8.1%.

Exports of soy chaff generated revenues of US$ 546 million, 1.7% higher than those obtained in the same period in 2008. The prices of soy chaff were 6.3% greater than those registered in July 2008, whereas the volume exported dropped 4.3%.

Soy oil exports dropped 51.3%, due to e 24.1% drop in the volume exported and a 35.8% reduction in prices.

Transnortheastern

With approximate investment of 5.4 billion reais (US$ 2.9 billion) and scheduled for conclusion by late 2011, the New Transnortheastern Railway will have capacity for transporting 30 million tonnes of cargo per year.

The railway will be 2,278 kilometers long, 1,728 kilometers of which will consist of new lines. Presently, 1,229 kilometers are being built, and 809 kilometers should be concluded in the first half of 2010. According to the Superintendence for the Development of the Northeast (Sudene), the Transnortheastern railway should generate around 550,000 jobs, direct and indirect.

The Transnortheastern railway starts in the municipality of Eliseu Martins, in the state of Piauí­, and extends until the municipality of Salgueiro, in the state of Pernambuco. At this point, it splits in two: one heads for the Port of Pecém, in the state of Ceará, and the other to the Port of Suape, in the state of Pernambuco.

The project forecasts a connection with the North-South Railway, ranging from Eliseu Martins to Estreito (state of Maranhão), and should also promote the remodeling of 550 kilometers of railway lines between the municipalities of Cabo (Pernambuco) and Porto Real do Colégio (Alagoas).

In the beginning of the operation, there will be 2.300 wagons and 56 locomotives, which should increase to 4,300 wagons and 110 locomotives by 2025, thus contributing to reduce the logistical costs of exporting, among other benefits.

Tasting

Musa, a company based in the state of Minas Gerais that specializes in manufacturing alcoholic beverages from fruit spirit, is promoting a tasting of its product line at the International Fair of Fruit and Derivatives, Technology, Processing and Logistics (Fruit & Log), due September 8 to 10 at the Expo Center Norte, in the city of São Paulo.

Musa's fruit spirits are made manually at farm Sí­tio Caminho do Sol, located in between the municipalities of Maria da Fé and Itajubá, in the south of Minas. The fruit, when ripe, are crushed and then fermented.

Portugal and Colombia are already among the countries that have surrounded to the tropical flavors of the spirits made by Musa, which is already negotiating a trade partnership with France.

Anba

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