São Paulo – Brazilian exports to Arab countries dropped in January. As per figures from the Brazilian Ministry of Development, Industry and Foreign Trade, compiled by the Arab Brazilian Chamber of Commerce, export revenues stood at US$ 1.032 billion, down 9.61% from January 2013. Total exports from Brazil were slightly over US$ 16 billion in January 2014, up 0.37%.
The leading importer of Brazilian products in January was Egypt. The North African country purchased the equivalent of US$ 202.77 million, consisting mostly of meats. Exports were up 0.46% from January 2013. Saudi Arabia imported the equivalent of US$ 200.44 million, down 30.34% from January 2013. The country was Brazil’s second leading export target. Sugar and grain exports to Saudi Arabia declined.
Brazilian exports to the United Arab Emirates were down 5.86% in January. Sales declined for chemicals, machinery and electronics, shoes and footwear, mineral products, wood pulp, stones and cement, and transport materials and parts. On the other hand, the Emirates’ processed food imports from Brazil were up 44.6%.
Exports from Brazil to Algeria were up 119.8% to US$ 107.53 million. Sales to the North African country were driven by maize, which accounted for US$ 56.8 million.
According to ministry figures, sales to Yemen stood at US$ 60.16 million, up 169.8%. Exports to Morocco were down 34.6% to US$ 54.18 million. Oman imported the equivalent of US$ 46.2 million, down 50%; Bahrain imported US$ 35.08 million, up 141.5%; Tunisia imported US$ 33.17 million, down 38.7%; and Libya imported US$ 26.3 million, down 36.8%.
According to Arab Brazilian Chamber CEO Michel Alaby, a slight decline in exports is to be expected early on in the year. In 2014, a rebound is expected beginning in March.
“As a result of the harsh winter in some countries, exports usually drop in January and February, and not only to Arab countries. A 12% to 13% decline is to be expected, and is usually followed by a strong rebound in March as the period’s crop gets shipped. This year, Brazilian exports to Arab countries are not poised to drop. Some of those countries should buy more food to meet their domestic demand, like Egypt and Libya. The Emirates may buy more in order to re-export, and the same holds true of Lebanon and Jordan,” said Alaby.
Agribusiness
In January, Brazilian agribusiness exports to the Arab countries stood at US$ 814 billion, down 3.93% from January 2013, according to information from the Ministry of Agriculture. Exports increased for meats, soy oil, bran and bean, tea, matte and spices, but dropped for forest products, oleaginous plants (except soy), sugar and ethanol, vegetables and grain.
Soy exports soared by 815.1%, from US$ 1.3 million to US$ 12.3 million January-on-January. Sugar and ethanol export revenues were down 7.02% to US$ 283.6 million. The volume shipped, however, was up from 653,000 to 708,000 tonnes.
Among the leading importers of Brazilian agribusiness products, exports to Egypt were up 7.7% to US$ 168.6 million. Exports to the Emirates were up 28.1% to US$ 145 million. Exports to Saudi Arabia were down 32.3% to US$ 158 million. Exports to Algeria were up 113.7% to US$ 101.1 million.
*Translated by Gabriel Pomerancblum
