Brazil’s imports of Egyptian olives rose 210% YoY in first fourth months of 2020

Although Brazil decreased olive imports in the first four months of 2020, the country bought significantly more from Egypt during this period than before. According to information compiled by the Arab Brazilian Chamber of Commerce based on data from the Economy Ministry, olive oil shipments from Egypt to Brazil resulted in revenues of US$ 6.7 million from January to April, which meant a 210% year-on-year increase.

According to the president of the Brazilian Association of Olive Oil Producers, Importers and Traders (Oliva), Rita Bassi, one of the reasons for the increase in sales from Egypt to Brazil in the period is the economic crisis that Argentina, Brazil’s main olive supplier, is facing. The drop in sales of Argentine olives to Brazil, in the same period in which those from Egypt rose, was 27%, with sales revenues at US$12.5 million.

Another factor that contributed to the increase in Brazil’s imports of Egyptian olives was the increase in competitiveness since the country’s free trade agreement with Mercosur came into force in September 2017. Before this date, the rate for Brazil to import Egyptian olives was 14%. The tax fell by 25% when the deal came into effect, by 50% after a year and by 75% at the end of last year. This is currently the discount on the import tax, but it will be zeroed in September this year.

In the first four months of this year, Egypt was the third-largest supplier of olives to Brazil. The first was Argentina, the second was Peru, Spain was fourth and Portugal was fifth. The Peruvians sold US$7.2 million in olives to Brazil, the Spanish US$3.6 million, and the Portuguese US$551,000. Peru’s sales dropped 6.8%, Spain’s 6.98% and Portugal’s rose 43.8%.

Brazil purchased US$30 million in olives from January to April, 3.3% less than in the same period in 2019. Brazilian consumption of olives is mainly supplied by imports.

Source: Brazil-Arab News Agency

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