Brazilian agribusiness strikes record high exports in May

Brazilian agribusiness exports reached US$16.78 billion in May, representing an increase of 11.2% compared to the same month in 2022. This is the first time exports have exceeded US$16 billion in a single month since 1997. Agribusiness products accounted for 50.8% of total Brazilian exports.

The Secretariat of Trade and International Relations of the Ministry of Agriculture and Livestock (SCRI/Mapa) analyzed that the grain harvest in Brazil, which exceeded 315 million tonnes, directly influenced this result. The quantum index of agribusiness exports in May grew by 27.6%, enabling a new record despite the reduction in international prices.

Soybeans

Sales of soybeans in grain reached a record high of US$8.13 billion. The volume of 15.60 million tons shipped was the second-highest in history, surpassed only by April 2021 (16.11 million tonnes). China was the main destination, accounting for approximately 60% of the total.

Foreign sales of soybean meal also set a record in value (US$1.43 billion, +32.0%) and volume (2.71 million tonnes, +38.4%).

More than 99% of Brazil’s soybean fields have been harvested while growers have only begun reaping their second corn, which is planted after soybeans are harvested in the same areas.

Soy exports from Brazil | Jan 2019 – Apr 2023 | WTMT

Source: DataLiner (click here to request a demo)

Meat

Beef exports decreased to US$952 million (-11.8%) due to the reduction in the average export price. However, there was a record volume of 191 thousand tonnes, driven by Chinese demand after the temporary suspension of sales to the country. China remains Brazil’s largest importer of beef, accounting for 61.3% of the total value exported.

Chicken meat exports reached a record quantity of 423 thousand tons, despite a reduction in value to US$854 million (-3.5%). This increase in volume occurred even after the first confirmed cases of Avian Influenza in Brazil. The Ministry of Agriculture and Livestock declared a zoo-sanitary emergency and implemented preventive measures to safeguard commercial farms.

Sugar

The sugar and alcohol sector experienced a significant export value increase, from US$665 million in May 2022 to US$1.21 billion in May 2023 (+81.2%). Sugar was the main product exported, reaching a record value of US$1.14 billion (+88.5%).

The sugar export chart below was drafted using maritime data gathered with Datamar’s market intelligence service DataLiner.

Brazilian sugar exports | Jan 2019 – Apr 2023 | wtmt

Source: DataLiner (click here to request a demo)

Year-to-date (January to May)

In the first five months of this year, Brazilian agribusiness exports totaled US$67.3 billion, reflecting a growth of 5.8% compared to the same period in 2022, when sales amounted to US$64 billion. Agribusiness accounted for nearly half of Brazil’s total foreign sales, with a share of 49.5%.

Several factors contributed to this positive performance, with notable achievements in the value and quantity of soybeans, soy bran, chicken, and pork exports. Additionally, there were record values for corn and sugar and record volumes for cellulose and soybean oil.

Soybeans in grain represented 81.2% of the total value shipped by the soy complex sector, reaching a historical value of US$26.53 billion. Volume-wise, there was also a record with 49 million tonnes.

Brazil is expected to become the world’s largest exporter of soybean meal in 2023. The product recorded a record value of US$4.76 billion and a volume of 8.84 million tons.

Foreign sales of corn reached a historic record value of US$3.09 billion. According to SCRI’s analysis, this growth can be attributed to the current corn harvest forecast by Conab, which estimates a record amount of 125.72 million tonnes. The increase in foreign sales has been primarily influenced by the effects of the first cereal harvest, with 10.6 million tonnes of grain shipped.

Sugar sales also achieved a record value of US$3.85 billion, with 8.4 million tonnes sold.

Pulp exports reached an all-time high of 8.17 million tonnes during this period. Additionally, soybean oil experienced a record volume of 1.19 million tonnes.

Chicken meat exports recorded a record value of US$4.21 billion and a volume of 2.13 million tonnes, while pork exports amounted to US$1.14 billion and 473 thousand tonnes.

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