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Brazil Agribusiness Exports Explode: 27% Growth, US$ 74 Billion in Revenues

Brazilian soy Brazilian agribusiness exports should end the year with revenues of US$ 74.4 billion with the soy complex (grain, chaff and oil) as the cash cow.  This represents a growth of 27.4% over the US$ 58.4 billion that the sector productive chain sold to the world in 2007.

This should be the greatest export revenues ever received by the Brazilian agribusiness chain in its history, and should also generate a surplus of US$ 62 billion – also record, in the sector trade balance.

To foreign trade experts, the performance of the agribusiness trade balance from January to July this year is a clear sign of how exports and the surplus may still be higher than expected.

In the understanding of the economic analyst of the Union and Organization of Cooperatives of the State of Paraná (Ocepar), Cassiano Bragagelo, the agribusiness trade balance figures disclosed August 28 by Brazil's Ministry of Agriculture, Livestock and Supply only strengthen the market forecasts for the performance of agribusiness foreign trade in 2008.

According to the Ministry of Agriculture, from January to July, agribusiness exports totaled US$ 41.7 billion, growth of 30.2% over the same period last year. Imports, in turn, totaled US$ 6.7 billion, growth of 44.7% over the same period in 2007.

According to the Ocepar analyst, despite the growth of agribusiness imports, the sector trade balance in the first seven months of the year as against January and July last year totaled US$ 7.6 billion, rising from US$ 27.3 billion to US$ 34.9 billion.

Analyzing the agribusiness trade balance result for last month alone, the specialists noticed that foreign sales have grown 50.3%, resulting in revenues of US$ 7.9 billion.

Also in July, imports grew 55.2%, and Brazil imported US$ 1.1 billion. With this, last month the trade balance result, compared to the same period in 2007, registered two historic records in the recorded series, which began in 1989: in exports (US$ 7.9 billion) and in the trade balance surplus, US$ 6.8 billion.

"Up to the end of the year, all figures seem to show that agribusiness exports should continue heated, stimulated by prices, even if the volumes exported do not always follow the expansion of the sector," explained the technical advisor at the National Confederation of Agriculture and Livestock (CNA), Matheus Zanella.


Cassiano Bragagelo agrees with the CNA advisor regarding future growth of exports and mentioned as examples the record sales of cooperatives from the state of Paraná. A study by the Technical and Economic Management Department at Ocepar shows that exports of cooperatives in the state had growth of 65% in sales in the first seven months of 2008, double the total registered by Brazilian cooperatives in the period (32.5%).

But Brazilian agribusiness exports have been growing throughout most of the Brazilian states, according to the Ministry of Agriculture. In July, for example, foreign sales of the state of Goiás, Mato Grosso, Bahia and Mato Grosso do Sul all grew over 100% when compared to exports in the same period in 2007.

Figures by the Ministry of Agriculture also show that, last month, the states that most sold on the foreign market were São Paulo, Paraná, Rio Grande do Sul and Mato Grosso. Of total Brazilian agribusiness exports in July, US$ 7.9 billion, the states were responsible for approximately 52%.

Agribusiness exports from the state of São Paulo grew 26.2% when compared to July 2007, reaching US$ 1.6 billion. Sugar, alcohol, orange juice, raw beef and paper were the main products shipped by the state of São Paulo. In the accumulated result from January to July, São Paulo sold to the foreign market the equivalent to US$ 8.6 billion.

In July, Paraná exported US$ 1.3 billion in agribusiness products. When compared to the same period in the previous year, the growth registered was 76.5%. Soy in grain, raw chicken, soy chaff, refined soy oil and soy oil in bulk were the products most sold. From January to July, Paraná exported US$ 6.5 billion, registering growth of 53.3% over the same period last year.

Rio Grande do Sul, in turn, sold US$ 1.2 billion in agribusiness products. From January to July, the value exported totaled US$ 6.3 billion. The main products exported were soy in grain, tobacco, raw chicken, leather shoes and raw pork.

The boom of foreign sales of Brazilian agribusiness products cannot be attributed only to higher international prices of commodities but also to the fact that the sector productive chain is placing on the foreign market products with greater added value.

The greater participation of Brazil in the foreign agribusiness market was also boosted by more products in the basket and a greater number of countries to which agribusiness is exported. "Today Brazilian agribusiness products are present in over 180 nations whereas in the 1980s they were sold to little over 50 countries," explained the Rural Economics Professor at the Federal University of Paraná, Eugênio Stefanello.



  • Show Comments (1)

  • ch.c.

    “Brazil Agribusiness Exports Explode”
    Yesssssssssss….. but only when measured against a weak currency !
    Why dont you measure it against the Zimbabwe currency ?
    You will have finally found the right formula for your future Nuclear Projects !

    Facts coming from elsewhere than your Disinformation Dept at the Planalto in Brasilia :
    – 5 September – Friday
    Margen suspended cattle slaughtering operations at 16 plants due to liquidity problems. It has notified 3,500 employees, of its 5,000, that their jobs have been temporarily suspended as well. The Administrative Directors says market conditions are terrible and banks have restricted credit. “We can’t continue operating while losing money every day”, said the Director.
    source: Valor Economico

    – 30 July – Wednesday
    Despite reducing production by 20% this semester, meat-packing factories in Mato Grosso are beginning to shutdown their facilities and giving workers forced vacation because of the lack of supply of cattle for slaughter.

    – 22 July – Tuesday
    Data released this Tuesday, 15, from the Center for Advanced Studies and Applied Economics (Cepea) show that the cost of production of cattle has reached a level never before seen. Considering a starting point back in March 2003, the index which measures the costs of production has risen more than 60% as of March this year. In March 2008, the cost of production of cattle – The Total Operating Cost (TOC) – rose 4.04% from February to March and 10.6% for the year.

    – 31 July – Thursday
    Brazil Cosan swings to Feb-Apr loss
    SAO PAULO, July 30 (Reuters) – Cosan (CSAN3.SA: Quote, Profile, Research), Brazil’s largest sugar and ethanol group, swung to a net loss on Wednesday for the period between February and April, due to falling international sugar prices and rising costs, after a profit a year earlier.
    Cosan said its net loss was 5.3 million reais ($3.39 million) for the period after a 164.7 million reais profit at the same time last year.

    – Mato Grosso Crop 08/09
    Soybeans are already showing losses of R$ 50 to R$ 100 per hectare, due to the high cost of production
    DiÀƒ¡rio de CuiabÀƒ¡
    A little more than 30 days from planting, there are doubts and tension among producers.
    The chairman of the Association of Corn and Soybean Producers of the State of Mato Grosso (Aprosoja), Glauber Silveira, warns of losses of R$ 50 to R$ 100 per hectare, due to high cost production.

    Selling more but in a weaker currency doesnt mean your farmers are happy !
    Talk to them !!!!!!!!!

    Viva the Brazilian Fair Disinformation Dept with Bin the Crook at the helm !

    From March 2003 through 2008 cattle prices have 27.22% while operational cost have risen 63.19%. In these past five years, mineral supplements, fertilizers, and labor the largest increases, rising 48.25%, 11.97% and 8.58% respectively. Only in the month of March this year, the same items rose 18.42%, 7.57% and 21.89%.

    source: CEPEA/ESALQ

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