Agro exported US$ 1 trillion in the last decade

The agribusiness trade balance was close to US$ 160 billion last year. The sector had revenue of US$ 159.6 billion, up 32% compared to 2021.

If the foreign market was favorable for exports, the same did not happen with imports. Spending on the agricultural sector totaled US$ 51 billion, 43% more than in 2021. The data, calculated by the Sheet based on Secex (Department of Foreign Trade), include inputs destined for the sector.

With exports this year, Brazil reaches for the first time the record US$ 1 trillion accumulated in a decade. In the last five years alone, agribusiness generated revenues of US$ 580 billion in exports.

The good performance of exports last year caused the participation of agribusiness in Brazilian exports to rise to 48%, up from 43% in 2021.

The jump in the Brazilian trade balance in 2022 occurred because the country had the right product at the right time, meeting strong external demand. The high dollar made Brazilian products more competitive.

The consequences of this explosion in exports, however, were an internalization of high external prices for the internal market, mainly after Russia’s invasion of Ukraine.

This region, important in the supply of corn, wheat, vegetable oils and fertilizers, had an interruption in trade with the world for several months. As a result, Brazil achieved records in foreign sales, even for products it has no tradition of exporting, such as wheat.

The country also benefited from external prices. On average, the international price of soy rose 32% last year; corn, 42%; sugar, 20%; cotton, 23%; and meat, 20%.

One of the highlights was coffee. The main world supplier of the drink, the country saw the average price of 2022 exceed by 64% that of 2021. Drought and frost in 2021 left Brazilian production for 2022 below expectations. External demand was maintained and prices soared.

Two things remained constant last year, following a trend that has existed for years: soybeans lead exports and China is Brazil’s major partner.

In 2022, the soy complex (grain, bran and oil) earned the country US$ 61 billion, 27% more than in the immediately preceding year.

Only soybeans obtained US$ 47 billion, and the Chinese were responsible for 68% of this value. Next came soybean meal, with US$ 10.3 billion. Total soybean exports last year, however, fell to 78.9 million tons, after reaching 86.1 million in 2021.

In the 2022 harvest, Brazil had a drop of 20 million tons, caused by climatic adversities. The lower supply from Brazil supported external prices at high levels.

A novelty is the US$ 10.3 billion with soy bran. External demand was heated and traditional suppliers, such as Argentina, had problems with exports.

Brazil’s revenues could have been higher, but the government of Jair Bolsonaro limited bran production by reducing the percentage of biodiesel mixed with diesel.

The jump in Brazilian agribusiness exports is also due to meat. Last year, the sector placed 8.3 million tons of beef, chicken and pork on the foreign market, with revenues of US$ 25.3 billion.

The sector benefited from external demand and the acceleration of average prices in the period. Once again China gives flow to the Brazilian market. At least 53% of exported Brazilian beef was destined for that country.

Pork exports to the Chinese market slowed down last year. Affected by African swine fever, the Asian country was very dependent on the foreign market. Only now are they managing to recompose the internal supply.

The dependence on beef by the Chinese is expected to continue, due to the country’s difficulties in increasing its herd at a time when more consumers reach the middle class and adopt new eating habits. The Chinese were left with 53% of Brazilian beef exported in 2022; 44% pork and 14% chicken.

Foreign sales of wood also yielded good dividends on the scale. During the Bolsonaro government, exports of tropical wood, such as ipe, cedar, pau-marfim, cherry, oak and others, reached 585,000 tons, 78% more than in the immediately previous four years. Among the largest importers are the USA, the Netherlands, Belgium, France, Spain and the United Kingdom.

Brazil also benefited last year from the strong demand for cereals. Due to drought or geopolitical problems, there was a reduction in supply in several countries. Brazilian corn exports reached a record 43.4 million tons, surpassing the 42.8 million in 2020.

Cereal revenues, due to the increase in international prices, rose to US$ 12.3 billion. In 2021, due to a severe drought that hit the off-season, exports had fallen to 20.2 million tons, the lowest volume since 2012.

Brazilian spending on imports of agribusiness products soared. External purchases of food and inputs reached US$ 51 billion, 43% above 2021, due to the same factors that favored exports. The main cost was the purchase of fertilizers, whose prices skyrocketed after Russia’s invasion of Ukraine. Although Brazil has reduced purchases of this input, compared to 2021, spending rose to US$ 24.8 billion, 63% more.

The geopolitical problems in Eastern Europe destabilized the fertilizer market, with an increase in world demand.

Brazil, highly dependent on imports, accelerated purchases in the first semester, slowing down in the second. At the end of the year, 38.2 million tons had entered, down from 41.6 million in 2021.

The expansion of the agricultural area in the country also required an increase in imports of agrochemicals. Last year, 669,000 tons were acquired abroad, worth US$ 6.9 billion. The volume of imported pesticides increased by 50%. Spending rose 67%.