São Paulo – Brazilian agribusiness exports to the Middle East generated US$ 7.7 billion in revenues last year, an increase of 31% compared with 2009, according to data disclosed by the Ministry of Agriculture, Livestock and Supply this Wednesday (12th).
As a result, the bloc remained third in the ranking of Brazilian export target regions, however its share of the country’s total exports has risen from 9% to 10%.
Three Arab countries are in the list of top 20 importers of Brazilian agribusiness products: Saudi Arabia, Egypt and the United Arab Emirates.
One of the highlights of 2010, according to the Ministry, was Egypt, which imported the equivalent of US$ 1.34 billion, an increase of 70% over the previous year. Among the top markets, Egypt had the second highest growth rate last year, second only to Iran, whose imports have grown by 86%.
Revenues from exports to Saudi Arabia, the leading market among the Arabs, reached nearly US$ 2 billion in 2010, an increase of 31% over 2009. Sales to the Emirates reached US$ 1.2 billion, a 5.2% increase using the same basis of comparison.
All-time high
Overall, revenues from Brazilian agribusiness exports reached US$ 76.4 billion, an all-time high and 18% more than in 2009. The previous record, set in 2008, was surpassed by US$ 4.6 billion. Nevertheless, the share of agribusiness in total Brazilian exports has declined from 42.5% in 2009 to 37.9% last year.
According to the Ministry, the increase in revenues from exports resulted from an average growth of 14.6% in product prices and of 3% in volume shipped.
Once again, agribusiness was the main contributor to the Brazilian trade surplus. The difference between exports and imports was US$ 63 billion, even though imports have grown by 35%.
The minister of Agriculture, Wagner Rossi, stated that the results attest to the steadiness of Brazilian farmers. "The results have been achieved in spite of the consequences of the exchange rate. They prove our farms are capable of producing very high quality products and face the market, barriers notwithstanding," he claimed at a press conference held in Brasília, according to Agência Brasil. The appreciation of the real against the dollar, which detracts from the competitiveness of Brazilian products abroad, is the main complaint of exporters.
Products
Soy grain, oil and chaff have remained the top export items, but the highlights of the year, in terms of growth, were sugar and ethanol. Sales of these products reached US$ 13.7 billion, 42% more than in 2009. Revenues from exports of sugar reached US$ 8.4 billion, growth of 52.3% using the same basis of comparison.
According to the Ministry, 2010 was the second consecutive year in which exports of sugar have grown by more than 50%, as a result of higher volume shipped and prices charged. The Ministry informs that higher prices and demand were a result of low international stocks and crop failure in other producing countries, especially India.
Sugar and alcohol have outperformed meats and ranked second among the top agricultural export items sold from Brazil to foreign countries. Meat exports reached US$ 13.6 billion last year, 15.6% more than in 2009.
Other highlights of the year, according to the Ministry, were maize and coffee sales, which had record-high revenues.
To Wagner Rossi, in 2011, agribusiness exports should grow by at least 10%, exceeding US$ 84 billion. "We will grow by at least 10%. We may reach the historical average of the last ten years, which is 14%," said he, according to Agência Brasil.
*Translated by Gabriel Pomerancblum
