Brazil has record food exports to Africa

Africa, a continent currently being visited by former President Luiz Inácio Lula da Silva, is ramping up its food imports from Brazil. In 2023, these imports soared to a staggering US$9.8 billion, marking a record high well beyond previous years. Despite Brazil’s surge in food exports, Africa’s share remains steady at 7% of the total exported by the South American nation.

At the turn of the millennium, Africa’s presence in Brazilian imports amounted to a modest US$525 million, representing just 4% of the country’s total food exports. By 2011, this figure had surged to 11%, only to recede to 6% by 2019.

African nations are increasingly seeking commodities like sugar, corn, meats, and soybeans from Brazil. Surprisingly, coffee, although produced within several African countries, also features on their list of imports. Sugar expenditure topped the charts at US$4.7 billion last year, closely trailed by corn and meats, each accounting for US$1.5 billion.

On the flip side, exports of live animals, a sector that had seen significant activity and expansion across Africa over the past five years, began losing steam, especially during the pandemic era. Egypt, a crucial partner in this domain, slashed its purchases from US$56 million worth of live cattle in 2019 to a mere US$928,000 in 2021. However, it rebounded last year, ramping up purchases to US$33 million.

Egyptians stand out as one of Brazilian agribusiness’s key trading partners on the continent, constituting 17% of African imports into Brazil. Last year alone, Egypt imported a whopping 1.13 million tons of sugar and 1.62 million tons of corn, in addition to 130,000 tons of beef and poultry.

On the downside, Brazil is witnessing a decline in dairy exports. Sales of condensed milk, cream, and other dairy concentrates, which had once totaled 20,000 tons in Africa, plummeted to an annual average of 816 tons over the past four years. Total dairy sales in 2023 hit their lowest point since 1999, with volume dwindling to a mere 1,287 tons and value plunging to US$3.4 million.

Conversely, egg exports hit an all-time high, with 6,563 tons sold last year, valued at US$26 million, according to data from the Ministry of Economy’s Foreign Trade Secretariat (Secex). Egypt played a minor role in these purchases, which were primarily driven by Senegal and South Africa.

Algeria emerges as Brazil’s primary partner in agribusiness on the African continent, with imports reaching US$2.2 billion in 2023, followed closely by Egypt, which acquired foodstuffs worth US$1.6 billion. Morocco and Nigeria trail behind, with imports totaling US$1.2 billion and US$851 million, respectively.

Source: Folha de S. Paulo

Click here to read the article in Portuguese: https://www1.folha.uol.com.br/colunas/vaivem/2024/02/brasil-tem-exportacoes-recordes-de-alimentos-para-africa.shtml

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