Brazilian fruit exports decline as pandemic worsens

Data from SECEX (the foreign trade secretariat) compiled by ABAFRUTAS (the Brazilian association of fruit and derivative exporters) show that Brazilian fruit exports in January and February totaled 155,800 tons, a 1% drop compared to the same period last year. According to the organization, the worsening of the Covid-19 pandemic, which led many countries in Europe to tighten travel restrictions, was one reason for the fall.

Total foreign sales revenue increased 3%, to US$ 114.9 million. However, performance was not uniform. Some fruits in the Brazilian export basket showed increased exports, such as apples, which increased by 238% in volume and 249% in sales revenue. Grape exports also increased.  These fruit exports grew 74% in volume in the first two months compared to the same period in 2020. Income increased 58% to US$ 4.8 million.

Lemon and lime sales, usually high in the first two months of the year, decreased. Sales volumes were 15% lower than during the same period last year. These sales yielded US$ 14.9 million, or 13% less than in the first two months of 2020. Papaya sales decreased by 6% in export volumes and  8% in revenue.

Mango sales, equally important in the segment’s trade basket since they are the second-best revenue-generating fruit, behind only melon – actually increased in volume by 5%. Still, this increase was not reflected in sales revenue. Revenue of US$15.2 million in the first two months remained at the 2020 level.  “In some places, the ‘lockdown’ was so comprehensive and rigorous that it affected consumption. Many people were unable to go to the market,” says Jorge de Souza, technical and project manager at ABAFRUTAS.

Avocado was one of the fruits that suffered the most in the first two months. Demand decreased caused by the new restriction measures abroad – Europe and the United States account for about 90% of Brazilian fruit imports. But the 2020 drought in cultivated areas reduced the quality and thus affected the export revenue.

In the first two months of last year, the avocado was among the ten fruits that Brazil most sold abroad. In early 2021, the fruit left that group. In volume, Brazilian avocado exports fell 39% in the accumulated index between January and February. The decline was even more significant in revenue: the drop was 43%, to $ 513,500.

See the graphs below for Brazilian fruit exports since 2018:

Today, ABAFRUTAS works with two scenarios for exports this year, explains Souza. In the most optimistic, which considers a faster acceleration of vaccination against Covid-19, shipments will gain traction in the second half and end the year with an increase of 5% to 6%, similar to previous years. In the most pessimistic scenario, vaccination in Europe will be slow, with the emergence of new waves. “In this scenario, we could have a greater negative impact,” he says.

Source: Valor Econômico

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