Agribusiness exports for Brazil hit a record in June

Agribusiness reached record levels for the month of June, with exports of US$10.17 billion, an increase of 24.5% compared to exports in June 2019 (US$8.17 billion). This data was shared by the Agribusiness Balance Bulletin released by the Department of Trade and International Relations of the Ministry of Agriculture, Livestock and Supply (SCRI-Mapa) on 10 July.  According to the bulletin, in no other year since records began in 1997, have agribusiness exports exceeded US$10 billion for June.

Soy complex was the main sector responsible for the growth of agribusiness exports. Foreign sales in the sector rose from US$3.53 billion in June 2019 to US$5.42 billion in June 2020, representing an increase of 53.4% ​​or almost US$1.9 billion in absolute values. To serve as a comparison, agribusiness exports grew by US$2.0 billion over the same period comparison.  The export of soybeans in grains (13.8 million tonnes) had a great influence on these values, reaching US$4.67 billion in the month. Sugar exports, meanwhile, increased by almost 1.5 million tonnes in June 2020 compared to year-ago levels.

China was the main importing country responsible for the growth of Brazil’s exports, acquiring 70% of Brazilian soybeans in June. The Asian country also increased purchases of Brazilian agribusiness products as a whole by 65% year-on-year, equivalent to US$1.3 billion.

Brazilian agribusiness increased its share of Brazilian exports from 44.4% in June 2019, to 56.8% in June 2020. In turn, agribusiness imports decreased from US$984.55 million to US$826.28 million over the same time period. Thus, the trade balance for the sector reached a surplus of US$ 9.3 billion.

Meat

Meat exports reached US$1.41 billion – a record for June at 626,500 tonnes. Beef represented more than half of the exported value of meat, at a record US$742.56 million, and 176,600 tonnes by volume.

Pork exports also showed record value and volume levels for June. Exports totaled US$196.86 million, with a volume of 95,000 tonnes sold. Revenues from chicken exports were down 32.1% during the same period, reaching US$438.23 million.  This is due to a 13.6% decrease in the exported volume and a 21.4% reduction in the average export price.

China stood out again in the acquisition of Brazilian meats, having imported half of the beef and pork exported by Brazil. China’s participation in chicken purchases was also relevant, reaching 23.7% of the total exported.

Alcohol and sugar

The sugar and alcohol sector had the highest percentage increase in exports among the main exporting sectors of Brazilian agribusiness, rising 74.5% in June of this year compared to last year, from US$536.12 million to US$935.37 million.  Sugar cane sugar exports accounted for most of this value, at US$810.80 million (+ 80.4%).  A volume of almost 3 million tons was exported (+ 94.8%).  Alcohol also registered an increase in foreign sales, rising from US$85.83 million in June 2019, to US$122.71 million in June this year.

According to the bulletin, the growth of Brazilian sugarcane exports is linked to the breakdown of the 2019/2020 sugarcane crops in India and Thailand, which made it possible to expand exports to various markets. Indonesia is a market that did not import any Brazilian sugar in June 2019 and acquired US$86.78 million last month.

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