El Niño to affect Brazilian banana exports in 2024

Brazilian banana exports experienced a decline in both volume and revenue in 2023. The total volume exported was 56.2 thousand tonnes, a 48% decrease compared to 2022. The earnings were US$ 56.2 million (FOB), marking a 50% decline.

This decline was attributed to reduced fruit shipments to Mercosur, the primary destination for Brazilian bananas, despite increased exports to the European Union. The volume sent to the EU was 8.5 thousand tons, a 45% increase (2023 vs. 2022).

For the South American bloc, shipments amounted to 44.7 thousand tons, a 40% contraction. It is crucial to highlight that the decrease in shipments to this bloc was driven by the economic crisis in Argentina, one of the leading importers.

The chart below displays Brazilian exports of bananas (hs 0803), measured in TEUs, from January 2020 and November 2023. The data is from DataLiner.

Brazilian Banana Exports | Jan 2020 – Nov 2023 | TEU

Source: DataLiner (click here to request a demo)

The economic downturn in Argentina diminished its purchasing power and delayed payment deadlines, discouraging Brazilian exporters. For this year, the political instability of Mercosur is expected to continue impacting exports, along with the El Niño phenomenon, causing rainfall in the South, the primary exporting region.

Source: Conexão Safra

Click here to read the original news report: https://conexaosafra.com/economia/el-nino-deve-impactar-exportacao-de-banana-em-2024/

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