FAO and OECD project that Brazil will increase its weight as a food producer

Brazil will continue to increase its role as one of the main global food suppliers, including for products such as beef, and this despite a slower pace of growth of Chinese demand.

The projections are from the report on agricultural prospects 2021-2030 published by the United Nations Food and Agriculture Agency (FAO) and the Organization for Economic Cooperation and Development (OECD).

China will continue to have an enormous influence on agricultural markets. China’s agricultural trade deficit grew from $2.6 billion in 2000 to $86 billion in 2020. For the next ten years, Beijing will continue to expand imports, but at a slower pace due to slower population growth, saturation consumption of some commodities, and efficiency gains in its own production.

In addition, the Chinese market will have tougher competition as trade tensions diminish with the US. The report predicts that China could once again become the main market for US agricultural exports.

See the DataLiner data below on Brazilian food and agribusiness exports from 2016 to 2020:

Brazilian Food and Agribusiness Exports | Jan to Dec 2016-2020 | TEU

Graph source: DataLiner  (To request a DataLiner demo click here)

In this scenario, and with Brazil as the dominant producer, Latin America as a whole will see its agricultural production grow 14% over the next ten years, given its abundance of land and water. The region’s net export value is projected to expand by 31% –  just over half the rate achieved between 2011-2020.

Until 2030, the region will continue to grow its share of global markets for major commodities. It may eventually increase its share to 63% of world soy exports, 56% of sugar exports, 44% of fish exports, 42% of beef exports, and 33% of chicken meat exports.

Source: Valor Econômico

To read the full original article, visit the link:

https://valor.globo.com/agronegocios/noticia/2021/07/05/para-fao-e-ocde-brasil-elevara-seu-peso-como-producer-de-alimentos.ghtml

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