São Paulo – Although perspectives for the coming Brazilian soy and maize crops are not greater than those last year, and even possibly reducing, Brazil should maintain its exports of both products to the Arab nations. This is the opinion of the director general of the National Association of Grain Exporters (Anec), Sérgio Castanho Teixeira Mendes.
"Exporters are concerned with the markets in which they operate. Exporting is not a greengrocer’s shop, where you sell or stop selling according to the climate. If you have won a market, a client, you must keep it. You may not manage to supply the full volume desired, but at least part should be sold, to conserve the client," he said.
Exports of maize, due to a smaller crop and also to lower Brazilian stocks, should drop from 10 million tonnes this year to around half in 2011, according to Mendes. Foreign sales of soy should remain at around 30 million tonnes this year and vary from 25 to 30 million tonnes next year. The Arabs are not traditional buyers from Brazil in the area, but have been expanding their imports.
"I have the feeling that, for some reason, the Brazilian people identify themselves more with the Arabs. Even multinational companies, which may be North American or European, with offices here, find it easier to export than do their headquarters."
Between January and September this year, the country exported 169,000 tonnes of soy in grain to three Arab countries (Saudi Arabia, Morocco and Sudan) and 1.6 million tonnes of maize to ten Arab countries (Morocco, Saudi Arabia, United Arab Emirates, Tunisia, Algeria, Libya, Syria, Yemen and Oman), as well as processed products like soy chaff and oil. The figures were collected by the Anec, which is working in the defence of interests of exporters, mainly maize and soy, in actions orchestrated by producers.
Between January and September this year, the main international destination for Brazilian soy was China, with 18.8 million tonnes, followed by Spain, with 1.5 million tonnes, and by the Netherlands, with 1.2 million tonnes. Maize had Iran as the main buyer in the first nine months of the year, with 943,000 tonnes, followed by Taiwan, with 516,000 tonnes, and Morocco, with 497,700 tonnes.
"The main importer of soy, a fact that may even generate concern, is China. Three years ago, China bought 30% of our exports, but now it buys over 60%," said Mendes. Exporters, for this reason, are trying to develop other markets, including the Russian. The director general at the Anec said, in fact, that the organisation is open to supplying the demands of the Arab countries and to help solve potential bottlenecks to export to the region.
The main problem for exports of soy and maize in coming years, however, will be production. According to a study by the National Supply Company (Conab), production of soy should be between 67.6 million tonnes and 69 million tonnes, with a possible reduction of one million tonnes over the previous crop or growth of 315,400 tonnes. Cultivation in the Midwest and Southeast of Brazil, in fact, suffered due to the lack of rain.
Cultivation of maize was affected by irregular rains. The crop should be 6.6% lower than before and reach 52.2 million tonnes. Lower prices than expected during the sowing period also influenced production, according to a study by the Conab. And production of both cultures, maize and soy, should also be affected, during the crop, by the La Niña phenomenon, recalled Mendes, from the Anec. "Mainly in Rio Grande do Sul," he said.
*Translated by Mark Ament
