Exports to Venezuela grow close to record levels

Despite Jair Bolsonaro’s (PL) government’s opposition to stronger ties with Venezuela, Brazilian agricultural producers have resumed exports of food to the neighboring country.

Official data from the Ministry of Economy reveals that exports from Brazil to Venezuela have increased since last year, with Brazilian producers flooding the Venezuelan market with corn, meat, and crackers in general.

The volume is still low compared to what Brazil exported in 2012 when the trade flow surpassed the mark of US$ 5 billion (R$ 25.4 billion). At that time, the Venezuelan market was the eighth largest destination for Brazilian sales abroad.

In 2019, there was a setback, and values plummeted. In 2016, Brazil exported US$ 1.6 billion (R$ 8.1 billion). In 2019, in the first year of the current Brazilian president in power, the volume dropped to just US$ 420 million (R$ 2.14 billion).

Last year, Brazil again exported over US$ 1 billion (R$ 5.09 billion) to the Venezuelan market. This amount is expected to be exceeded this year by far. Until June, the country had already exported more than US$ 713 million (R$ 3.63 billion).

The rise was led by food and agricultural products. For example, Brazilian soybean oil sales totaled more than US$ 120 million (R$ 611.6 million) through July.

Food preparations jumped from US$ 4 million (R$ 20.3 million) in 2019 to US$ 75 million (R$ 38.2 million) in 2022. Meat sausages went from a non-existent export number to US$ 54 million (R$ $275.2 million) this year.

The sugar data are the most revealing. After falling to just US$ 19 million (R$ 96.8 million) in 2019, they surpassed US$ 48 million in the first seven months of this year (244.6 million). Significant gains were also recorded in the corn, margarine, and Brazilian biscuits markets.

Imports of Venezuelan products into Brazil also rose substantially. From US$ 80 million (R$ 407.7 million) in the first year of the Bolsonaro government until July 2022, it is now at US$ 176 million (R$ 897.1 million).

Source: Toda Palavra

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