Agribusiness sets new record, registering almost $14 billion in exports in May

May 2021 registered a record in exports of agribusiness products, with sales of US$ 13.94 billion, an increase of 33.7% compared to May 2020.

According to an analysis by the Department of Commerce and International Relations of the Ministry of Agriculture, Livestock, and Food Supply, sales were influenced by the increase in international commodity prices. The price index of agribusiness products exported by Brazil increased by 24.6%, while the growth in the quantity index was 7.3%.

Analysts point out that the pandemic ushered in a new era of intensive commodity use, as governments emphasize job creation and environmental sustainability rather than focusing on financial stability triggered by the 2009 crisis. In addition, strong Chinese demand continues to put pressure on the prices of grains, such as corn and oilseeds, destined to rebuild and expand the pig and chicken herds in China.

Despite the strong increase in agribusiness exports, the sector’s percentage share decreased from 59.5% of total Brazilian exports (May/ 2020) to 51.7% (May/ 2021).

Agribusiness imports rose from US$837 million (May 2020) to US$1.22 billion (May 2021), increasing by 13.5%. The trace balance was $12.71 billion.

The soy complex continues to be the main highlight, accounting for practically 60% of the value of agribusiness exports last month.

According to the SCRI bulletin, the international soybean scenario reflects low US stocks and high Chinese purchases.

Total Chinese imports of soybeans grew 12.8% in 2021, from 33.9 million tons between January and May 2020 to 38.2 million tons during the same period of 2021.

Brazilian exports registered a record volume of 16.4 million tons of soybeans in May (+16.3%). The amount and the increase in the average export price (+34.5%; US$447.73 per ton) generated a record value of US$7.34 billion in exports of the product (+56.3%): +US$2.64 billion in absolute value.

In May, China was the country that most imported soybeans in grain form (11.2 million tons), equivalent to 68% of the total exported by Brazil, or an absolute increase of 1.1 million tons compared to May 2020. European Union appears in second place with 1.552 million tons (-8.8%), followed by Turkey with 730,000 tons (+74.5%).

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