Brazil’s Agricultural Exports See Volume Growth, Dollar Revenue Declines

Brazilian farming exports maintained a steady pace throughout 2024, with a 4.5% increase in export volume between January and June. However, revenue in dollars saw a slight decline due to a 5% drop in average prices paid in dollars combined with the rise in the quantity exported. These figures were released by Cepea (Center for Advanced Studies in Applied Economics) of Esalq/USP, based on data from the Ministry of Development, Industry, Commerce, and Services (MDIC) and the Siscomex system.

Brazilian agricultural exports totaled $82 billion in the first half of the year, showing a slight contraction compared to the same period in 2023. Products such as cotton, sugar, coffee, fresh beef, and soybean meal drove the growth in export volume. Cotton, for instance, saw a 228% increase in export volume, while coffee exports grew by 52%. However, the reduction in soybean production in the country and the continued decline in dollar prices present significant challenges for the sector as the year progresses.

China remains the primary destination for Brazilian exports, absorbing roughly one-third of agribusiness sales. Additionally, markets such as the United States, the United Arab Emirates, Saudi Arabia, and India have increased their imports of Brazilian products.

The outlook for the second half of 2024 is challenging. The smaller soybean harvest could limit the growth of exports in this category, making it difficult to surpass the revenue records achieved in 2023. Nevertheless, demand for products like cotton, sugar, and fresh beef is expected to continue rising, helping to sustain export volumes. The devaluation of the Brazilian real against the dollar has helped maintain the competitiveness of Brazilian products in international markets, but the decline in external prices continues to weigh on the sector’s financial results.

Sharing is caring!