Brazilian agribusiness balance shows a surplus of US＄ 105.1 billion in 2021

The Brazilian agribusiness trade balance reached the final run of 2021 operating in a surplus of US＄ 105.1 billion, 19.8% higher than in 2020, which was driven by the rise in international commodity prices. Data on Brazilian agribusiness trade balance were presented by the Institute for Applied Economic Research (Ipea) this Monday (1/17).

The Ipea-issued document provides a ranking of the most important producers, consumers, exporters, and importers on a global scale, highlighting Brazil’s relevance in supplying commodities like sugar, soybeans, diverse meat cuts, and coffee. While Brazil’s overall trade balance, which includes products from all industries, showed a US$ 36.6 billion surplus, the other sectors’ balances showed a US$ 68.5 billion deficit.

Exports

The overall strong performance of agribusiness in 2021 was due to a historic high in exports, which reached US$ 120.6 billion in 2021, a 19.7% rise over 2020. All of the fifteen key products in the export basket (which accounted for 89.5% of total exports in 2021) saw average prices climb, some by more than 20%.

Six items suffered losses in volume shipped, with beef (-8.3%) decreasing the most as a result of Chinese sanctions against Brazil; coffee (-3.6%), which met expectations of the negative biennial period; and corn (-40.7%) whose decrease was due to the diminished crop yield.

Even China’s three-month-long ban on Brazilian beef had little effect on the upward trend in shipments that began in September 2021. Until November, products like soybeans, pork, and chicken compensated for the drop. The restart of beef shipments to China in December, on the other hand, boosted the yearly export result.

Imports

Brazilian agribusiness imports increased by 18.9% compared to 2020, ending 2021 with a total of US＄ 15.5 billion. In addition to regularly imported products, such as wheat, olive oil, and fish, Brazil also increased imports of soybeans (5.0%) and corn (133.7%).

China-Brazil economic relations

China remains as Brazilian agribusiness’ main partner. Shipments to the country totaled US＄ 41.02 billion in 2021, up 20.6% compared to 2020. Soybeans (70.2%), beef (39.2%), cellulose (43.4%), sugar (15.6%), pork (47.7%), chicken meat (14.3%), and cotton (28.9%) were among the top products imported by China from Brazil.

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