Africa increases share in Brazilian agribusiness exports

African countries have increased their share of Brazilian exports this year, while European nations have reduced theirs. Asia remains the leading destination.

Although their participation is still relatively small compared to major importers, African expenditures in Brazil exceed those of Mercosur and the Latin American Integration Association (ALADI).

Imports from African nations primarily focus on sugar, meat, and grains. From January to September, African countries spent $7.3 billion on Brazilian agribusiness products, an 8% increase over the same period last year.

The European Union has slowed down. Expenditures by EU countries on Brazilian agribusiness products fell to $16.6 billion until September, a 14% decrease compared to the same period last year.
The most significant reductions from European countries occurred in the soy, coffee, and grain sectors. Spain, which is a considerable corn importer, spent 21% less this year than in 2022.

Germany, with a 22% decrease, and Italy, with a 10% reduction, also reduced their participation in the Brazilian market, according to data from the Secretariat of Foreign Trade (Secex).

Asia, the primary destination for Brazil’s production, increased its share of the trade balance even further. In the first nine months of the previous year, Asians accounted for 51% of Brazil’s revenues. This year, the rate rose to 54%. All the region’s major partners increased their purchases, including China, Japan, Thailand, South Korea, and Vietnam.

In North America, the United States has been buying less, but Mexico increased its spending in Brazil by 48% until September. With this increase, the country now accounts for 2% of Brazil’s agribusiness exports.

In South America, Argentina has been the standout. A crop failure in the neighboring country due to adverse weather conditions caused Argentinians to double their imports from Brazil. Traditionally, with a small share of the Brazilian market due to similar crop cultivation, Argentinians have risen to become Brazil’s fifth-largest importer this year.

Source: Folha de S. Paulo

To read the original publication, please check: https://www1.folha.uol.com.br/colunas/vaivem/2023/10/africa-aumenta-participacao-nas-exportacoes-do-agronegocio.shtml

Sharing is caring!