Economy

Tobacco shipments from Brazil to the US bring H1 exports to all-time high

Aug, 05, 2022 Posted by Gabriel Malheiros

Week 202231

Exports from the processing industry installed in Brazil’s Rio Grande do Sul totaled US$ 1.5 billion in June, a growth of 25.8% compared to the same month of 2021. In the first six months of 2022, foreign sales reached US$ 8.3 billion, a value 34.1% higher than in the first half of last year and a record volume for the period. The previous record had occurred in 2013, with US$ 8.2 billion.

One of the reasons for this success in the first half is the 44% increase in demand for industrial products from the state in the United States (USA) compared to the same time in 2021. In addition, in comparison to June of the previous year, 17 of the 23 exporting categories grew.

The food industry saw the biggest growth, shipping US$ 209.9 million in goods, especially soybean meal (+US$ 51.5 million) and Chicken meat (+US$ 48.2 million). The countries that received the largest quantity of food items from Brazil were China, India, South Korea, Iran, Spain, and Saudi Arabia, which together accounted for 52.4% of total exports.

Brazilian tobacco passes Chinese pre-inspection

Tobacco came in second with a gain of US$ 49.3 million, while the sector’s exports to China and the United States increased by more than US$ 25 million each, compared to the same month in 2021.

Automotive vehicles registered the third most significant increase, at US$ 32.7 million, with increased demand from Argentina, Colombia, and the United States. Among the negative highlights of the month are Chemicals, which dropped by US$ 45.5 million; Pulp and Paper, and Furniture, which reduced their sales by $17.8 million and $4.3 million, respectively, compared to June 2021.

As for the main destinations of Rio Grande do Sul exports, shipments to the United States stand out. The country purchased US$ 195.4 million, an increase of 68.4% compared to June 2021. On the other hand, Argentina acquired US$ 132.8 million, 60.9% more on the same basis of comparison. In the case of the USA, the reason for this performance was due to the high exports of Tobacco leaves (+US$ 27.3 million), Cellulose (+US$ 9.8 million), and Footwear items (+US$ 9 million).

For Argentina, the month saw increasing exports of Passenger Cars (+US$ 6.9 million), Vehicle and tractor components (+US$ 6.6 million), Fertilizers (+US$ 6.3 million), and Agricultural machinery and equipment (+US$ 5.3 million). Other notable achievements included increased sales from the Rio Grande do Sul to India, Spain, Mexico, and Saudi Arabia.

On the decreasing side, purchases from China again showed a substantial drop, down 61.5% compared to June 2021, driven by reductions in shipments of soybeans, which fell by US$ 507.1 million, and pork, US $31.6 million. They accumulate reductions of 77.3% and 55.8% in the year, respectively.

Source: GAZ

To read the full original article, please go to: https://www.gaz.com.br/embarques-de-tabaco-do-rs-para-os-eua-fazem-exportacoes-atingirem-nivel-recorde-no-primeiro-semestre/

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