As the son of a well known politician in Brazil and the head of a family-owned global conglomerate, Flavio Maluf is well qualified to comment on the recent report released by the Secretariat of International Relations of the Ministry of Agriculture, Livestock and Supply. The report contains export results for the month of June for Brazilian agribusiness. While the figures showed a decrease of 0.7% in comparison to that same period the previous year, Maluf pointed out that the downward movement was simply a balance of trade of agribusiness, which totaled US $ 8.17 billion (+ 0.7%). Read more about Flavio at terra.com
In truth, agricultural sector exports, which represent nearly half of all total foreign sales (45.6%) reached $1.04 billion in June, which is up 10.1% over the same period the previous year. Of the agriculture sector exports, soy makes up more than half of them (53.3%). Based on the most recent survey data of the 2017/2018 harvest, the Brazilian Supply Company (Conab) estimates that Brazil’s total export of soybeans for this year will reach 72 million tons. That would exceed the previous period’s volume by 5.6%. In addition, the total crop of soybeans is expected to reach or exceed 119 million tons, which is also up 4.2% on the previous crop.
The two main markets for Brazilian agribusiness exports are China and the European Union.
The EU in particular, which is currently comprised of 28 countries, showed a marked increase in sales of soybean meal, up US $94.70 million. Other increases include pulp (+ US $ 60.36 million), orange juice (+ US $ 35.40 million ) and green coffee (+ US $ 17.64 million). Maluf went on to further stress that in the initial months of 2018, from January to June, Brazil had already shipped a total of 46.27 million tons of grain which resulted in the generation of US $18.43 billion in revenues. Compared to that same time frame in 2017, that represented an increase of 5.2% in quantity and with an increase in the average price of 5.1%, that result in a total of 10.6% increase in the total exported value over this same time last year.