Africa is the fastest growing region for Brazilian agribusiness imports

Africa does not represent much for Brazilian agribusiness compared to Asia. Still, it is the region that has been growing the most in terms of commercial relations in this industry with Brazil.

In the first three months of this year, African countries increased their purchases from Brazil by 64%, compared to the same period last year. Asian countries did the same by 40%.

In addition to increasing their imports, Africa diversified trade with Brazil. Five products —sugar, soy, wheat, corn, and animal protein — represent 87% of this trade relationship.

This list also includes rice, beans, cornflour, and peanuts. According to the Brazilian Foreign Trade Secex Secretariat (Secex), 38 of the 54 countries on the continent import Brazilian agribusiness products, such as animal genetics and agricultural gear and equipment.

Egypt is one of Brazil’s main trading partners in the continent. Imports from the country totaled US$ 564 million in the first quarter of the year, 116% more than the first quarter of 2021.

See below for a comparison of Brazilian exports to Egypt in the months of January and February between the years 2021 and 2022. The data are from DataLiner.

Brazilian exports to Egypt (January x February) | 2021 – 2022 | WTMT

Source: DataLiner (click here to request a demo)

The Egyptians’ import list is extensive, spanning from live animals, meat, cereals, soybeans, and sugar.

The following chart displays the five most exported goods by Brazil to Egypt in the year 2021. The data are from DataLiner.

Top five goods exported to Egypt | 2021 | WTMT

Source: DataLiner (click here to request a demo)

The trade between Brazilian agribusiness and Africa increased this year because of wheat. In the first three months of 2021, Africans had imported 45,000 tonnes of cereal from Brazilians. This year, shipments have already surpassed 696 thousand. Morocco, South Africa, Sudan, and Egypt are all buying wheat from Brazil.

Rice and beans are also on the list of African imports. Senegal and Gambia were the primary buyers of rice, and Egypt and Angola, beans.

Compared to Brazil’s total exports, Africa is still far from other important blocs. Africans imported the equivalent of US$ 2.3 billion from January to March, well below Asian countries, which left US$ 17.1 billion of foreign exchange in the country.

In terms of Brazil’s trade relations assessed by economic blocs, the low evolution of Brazilian trade with Mercosur and other South American countries is attention-grabbing. Growth was less than 30%, the weakest among all economic blocs.

In the first three months of this year, compared to 2021, Brazilian agribusiness trade rose 53% with Europe, 44% with North America, and 44% with the Middle East.

Source: Folha de S.Paulo

To read the full original article, please go to:  https://www1.folha.uol.com.br/colunas/vaivem/2022/04/a-africa-e-a-que-mais-cresce-nas-importacoes-do-agronegocio-brasileiro.shtml

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