Grains

Brazil’s agriculture exports reach record high in first half of 2023

Jul, 17, 2023 Posted by Gabriel Malheiros

Week 202329

Brazil’s agriculture exports reached a record high of $82.8 billion in the first half of 2023, up 4.5% from the same period in 2022 ($79.24 billion). The increase in the quantum index (+8%) was responsible for the highest value on record, as the price index fell 3.2% in the period.

Agriculture exports reached $15.54 billion in June 2023, down 0.6% from the same month of the previous year ($15.62 billion), despite several records observed in soybeans (value and quantity), raw sugar cane (value), raw beef, and chicken (records in quantity) and cellulose (record in quantity).

According to an analysis by the Secretariat for Trade and International Relations of the Ministry of Agriculture and Livestock (SCRI/Mapa), this scenario is explained by the strong fall in the export price index in the month (-12.9%), which slightly reduced the monthly value relative to June 2022, even with an expressive increase in the quantum index (+14.2%).

The participation of agriculture exports in the total trade balance in June was almost 52%, as the reduction in exports of other products was higher (-15.7%).

Soybeans

The exported volume was a record for the month, with 13.77 million tonnes (+37.9% relative to June 2022). The value of soybeans exported reached $6.89 billion (+9.3%), also a record compared to past Junes. This amount was not more expressive due to the fall in the average export price (-20.7%), which reflected the global production conditions of the oilseed, with a record crop in Brazil and good production in the United States.

Beef

The main type of meat exported in June was beef: $974.13 million (-6.4%), with an increase of 26.4% in the exported volumes and a reduction of 26.0% in the average prices. China was the leading destination, responsible for 70.2% of exports in volumes: $698.52 million (-7.1%) and 135,37 thousand tonnes (+32.0%).

Chicken Meat

Chicken meat exports were $835.88 million (-6.2%), up 4.0% in volumes and down 9.8% in average prices in that month. The primary destinations were: China (US$155.88 million; +28.7%; 14.9% share; up 35.4% of exported volumes) and Japan (US$97.67 million; +9.7%; 9.6% of the total; +11.8% in volumes).

Cellulose pulp

Cellulose pulp exports were record-breaking in volumes: 1.55 million tons (+6.3%), resulting in $652.31 million (+2.4%). Traditionally, China, the United States, and the European Union concentrate on the exports of the product (78.4% of the share in quantity in June 2023).

Record in the year-to-date (January to June)

According to SCRI analysts, the growth in soybean exports contributed most to the expansion in agriculture sales from January to June 2023, with $2.88 billion above what was recorded in the previous year.

Other two products whose sales grew more than $1 billion were corn (+$1.58 billion) and raw sugar cane (+$1.20 billion). On the other hand, it is important to note the decline in exports of raw beef (-$1.26 billion) and green coffee (-$1.04 billion).

Despite China remaining the primary destination for raw beef (59.8% share in value), the significant decline still reflects the export sanction in early 2023 and the fall in average sales prices (-25.3%).

Source: Mapa

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