Brazilian agribusiness ends the first half of the year with record trade balance figures. Exports in the period reached US$ 79 billion, 30% more than in the same previous period.
The good performance from January to June raised revenues in the last 12 months to US$ 139 billion, up 26% over the same previous period.
This good evolution in exports is basically due to the increase in agricultural commodity prices. This increase, however, was also passed on to inputs, raising spending on imports to record levels.
In the first half of this year, spending on purchases of food, fertilizers, agrochemicals and machinery for the sector totaled US$ 22 billion, according to calculations by the Sheetbased on data from Secex (Secretariat of Foreign Trade).
Spending this semester exceeds by 66% that of January to June 2021. In 12 months, imports reached US$ 49 billion, 60% more.
Soybean, the main item in the agribusiness trade balance, shows how prices favored exports. In the first half, sales volume dropped 8% to 53 million tonnes, but revenues rose 23% to $30.7 billion.
On the import side, price pressure can be seen in purchases of fertilizers and pesticides. Fertilizer imports rose 17% in the period, but spending accelerated by 178%.
Purchases of agrochemicals rose 38%, totaling 501,000 tonnes in 12 months, but spending rose 48% to US$ 4.7 billion in the period.
Meat exports also show great pressure on sales values. With China’s lower demand for pork, Brazil put 9% less of this protein on the foreign market this year, but earned 17% more.
Sales of beef and chicken had higher volumes, but revenues grew at much higher levels.
In this first semester, the country has already reached US$ 12 billion in meat exports. External demand remains strong and, in some cases, the occurrence of diseases in large producers favors the Brazilian product.
The United States is experiencing an advance of avian influenza, which has already reached 38 states. In Europe, in addition to this disease that affects birds, the region is under the threat of African swine fever.
In addition to soy and meat, the country’s agricultural trade balance was benefited by exports of coffee, sugar, cotton, cellulose, wood and cereals. This last group is driven by foreign sales of wheat, a product on which Brazil is very dependent.
The country is heading towards a record in exports this year, but it will also have a weight of imports not previously recorded.
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