Abia: Brazilian Food Exports Hit USD 30.7 bln in 1st Half of the Year

Brazilian food exports grew by 8.5%, reaching a record high of USD 30.7 billion in the first half of this year, according to a report by the Brazilian Food Industry Association (Abia).

In terms of volume, the sector’s foreign sales increased by 19.1% compared to the same period last year, totaling 37.2 million tonnes. Abia projects that the sector’s exports could reach between USD 65 billion and USD 68 billion by the end of the year.

According to Abia, the export growth is primarily driven by a “strong appetite” for food, fueled by sales to the 22 countries of the Arab League—Brazil’s top market for processed foods. Food exports from Brazil to the region reached USD 6.2 billion from January to June this year, a 35.1% increase compared to the first half of 2023, according to Abia’s semi-annual market analysis.

“Brazil, once known as the world’s breadbasket, has now become the world’s supermarket,” commented Abia’s executive president, João Dornellas. Brazil exports processed foods to 190 countries.

Brazil’s food industry’s revenue in the first half, including exports and domestic sales, reached BRL 586.2 billion, up 7.8% from last year. Abia expects 2.5% to 3% annual growth in real sales of processed foods this year, in line with Brazil’s economic outlook and global growth projections.

During the first half of the year, the industry’s domestic food sales represented 73% of total revenue, reaching BRL 441.7 billion. According to Abia, domestic sales were boosted by the food service sector, where sales grew 10.3%, reaching BRL 124.9 billion. “The food service industry continues to recover from the pandemic’s impact, driven by employment and income growth in the country. This trend indicates that the domestic market is strengthening and diversifying,” Dornellas noted.

The food retail sector grew by 8.2% in nominal terms, reaching BRL 316.8 billion by the end of June. According to Abia, part of this positive performance is due to the stabilization of processed food prices amid increased domestic grain availability.

“Intense rains in Rio Grande do Sul impacted rice prices, though supply remains unaffected. Coffee and cocoa, with reduced international availability, continued to trend upward. Processed foods helped to curb food inflation in the first half of the year,” Abia emphasized. According to the association, accumulated inflation for fresh food reached 13.57% in the first six months of this year, compared to 1.28% for processed foods and beverages.

Brazil’s food industry invested BRL 21.11 billion in the first half of this year, an 8.7% increase over the same period last year. The investment was directed towards expanding and modernizing production facilities and building new plants.

The food industry processes 61% of the country’s agricultural production.

Source: Canal Rural

Click here to read the original news report: https://www.canalrural.com.br/economia/abia-exportacao-de-alimentos-atinge-recorde-de-us-307-bilhoes-no-1o-semestre/

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