Record-breaking agribusiness exports would be higher if not for the lack of containers

Jun, 30, 2021 Posted by Ruth Hollard

Week 202127

Brazilian agribusiness exports reached a record US$ 50.2 billion in the first five months of the year, a growth of 21.9% over the same period last year, according to data from the Ministry of Agriculture. And the numbers would be higher if it were not for the lack of containers.

“There is a delay in the shipping of containers, and this is worrying,” says the agribusiness manager at Itaú BBA, Guilherme Bellotti. According to Bloomberg’s data, this impacts the cost of ocean freight, which became 280% more expensive in one year.

See the graph below for a comparison of Brazilian agribusiness exports in the first five months of the year from 2017 onwards:

Brazilian Agribusiness Exports | Jan to May 2017-2021 | WTMT

Graph source: DataLiner  (To request a DataLiner demo, click here)

According to “Canal Rural,” one of the activities most affected by the problem is poultry farming in Rio Grande do Sul. OARS (the poultry organization of Rio Grande do Sul) estimates that industries in the segment move just 40% of the normal flow of exports. Beef slaughterhouses have also occasionally been impacted by the problem.

Another activity that is being impacted is fruit production. Exports are on the rise and have already reached US$ 422.3 million between January and May, 28.7% more than in the same months of 2020. But the numbers could be higher if there were no shortage of refrigerated containers that fruit growers must share with meat producers.

Source: Gazeta do Povo

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