Chinese demand allows Brazil’s agricultural exports to reach record high in 2018Jan, 22, 2019 Posted by datamarnews
According to Brazil’s Agriculture Ministry, the country’s agribusiness exports reached a record high in 2018, at US$101.7bn, up 5.9% YoY, mainly due to Chinese demand for soybeans. The last record was in 2013 with US$99.9bn generated. As a result of the trade war between the US and China, China has become Brazil’s main agricultural cargo export destination, with products worth US$35.59bn shipped in 2018, up US$9bn compared to 2017.
The following DataLiner chart shows a year-on-year comparison of Brazil’s soybeans exports to China since 2016:
The Ministry said Brazil’s soybean export hit a record of 83.6m tons in 2018. Of the total amount of soy shipped from Brazil, 68.8m tons were sent to mainland China, up 15m tons from 2017. Of the total volume Brazil’s exports in 2018, agribusiness accounted for 42.4%.
Chinese demand lifts Brazil’s agricultural exports in 2018: report
Demand from the Chinese mainland drove Brazilian agricultural exports to the world to a record of $101.69 billion in 2018, the Xinhua News Agency reported over the weekend.
Industry analysts said that Brazil has been a beneficiary of ongoing trade tensions between China and the US, which have forced China to find replacement markets across the globe.
The Chinese mainland was the largest destination for Brazil’s agricultural exports. Brazil exported agricultural products worth $35.59 billion in 2018, up $9 billion from 2017, the report said, citing Brazilian agriculture department figures.
Hong Kong was the fourth-largest agricultural export destination for Brazil, which shipped $2.5 billion worth of goods there in 2018.
The report said that Brazil’s soybean exports hit a record of 83.6 million tons in 2018, and strong demand from the mainland was the major reason. Brazil exported 68.8 million tons of soybeans to the mainland last year, an increase of 15 million tons from 2017.
The US was formerly the major soybean exporter to China, but after it instigated trade disputes, China needed to find replacements from across the globe, Jiang Shixue, director of the Center for Latin American Studies at Shanghai University, told the Global Times on Sunday.
Ma Wenfeng, a senior analyst at Beijing Orient Agribusiness Consultancy, said that “not only agricultural products but other sectors – including minerals from countries such as Argentina and Russia – are likely to see more growth in China.”
Ma told the Global Times on Sunday that the trade friction between China and the US will harm world economic growth. Both countries are expected to address trade problems through talks in the near future.
Brazil’s exports of agricultural products accounted for 42.4 percent of the country’s total exports in 2018.
Brazil’s beef exports reached a new high in 2018, rising 12.2 percent year-on-year to 1.35 million tons, the report said. Exports to the Chinese mainland stood at 322,300 tons, up 111,000 tons from 2017.
BRAZIL AGRICULTURAL EXPORTS REACH RECORD HIGH THANKS TO CHINA DEMAND
SAO PAULO, Jan 18 (Reuters) – Brazil’s agribusiness exports hit a record high of $101.7 billion dollars in 2018, up 5.9 percent from 2017, thanks to Chinese appetite for products like soy, the Agriculture Ministry said on Friday.
The previous annual record occurred in 2013, when the country exported $99.9 billion dollars. Brazil is the largest global exporter of items such as sugar, coffee, orange juice and soy.
According to Brazil’s Ministry of Commerce and International Affairs, exports to China increased by $9 billion last year as the Asian giant, embroiled in a trade war with Washington, turned to Brazilian soy.
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