São Paulo – Exports from Brazil to Arab countries grossed slightly over US$ 1.1 billion in June, up nearly 7% from June of last year. It was the highest monthly revenue to date in 2015, according to the Brazilian Ministry of Development, Industry and Foreign Trade.
Products whose exports increased in June include chicken, frozen beef, and soy bran, bean and oil. “The June performance still reflects the stocking up of products for Ramadan,” the Arab Brazilian Chamber of Commerce CEO Michel Alaby remarked.
Ramadan is the month of the Muslim calendar when devotees fast from sunup to sundown, but often celebrate with large collective meals in the evening, hence the need of importing foodstuffs.
According to the Brazilian Ministry of Agriculture, Livestock and Supply, Saudi Arabia – one of the primary targets – imported US$ 208 million worth of agribusiness products in June this year, up 41.5% from June 2014.
Sales to Egypt amounted to US$ 196.7 million, up 114%, according to the Ministry of Agriculture. Imports from the UAE reached US$ 117.8 million, down 40% from June of last year. These three countries respectively placed 6th, 9th and 16th among the leading buyers of Brazilian agribusiness products in June.
This year, Ramadan began on June 18th and ends on July 17th, therefore the stockpiling of products impacted on Brazilian exports to the region in May and June, and this should also be the case in July. “In the early days of July, exports will tend to keep growing, in the wake of Ramadan stockpiling,” Alaby said.
First half
The growth in exports seen in June, however, failed to offset the plummeting numbers recorded to date this year. In the first half, exports to Arab countries fetched US$ 5.8 billion, down 4.8% from H1 2014.
H1 exports declined for sugar, refrigerated beef, maize, steel pipes, tobacco and cattle. Exports increased for poultry, iron ore, frozen beef, soy bran, bean and oil, calcined alumina, gold, wheat and front-end loaders.
Conversely, Brazil’s imports from Arab countries were down 33.15% year-on-year in June to US$ 756 million. Year-to-date through June this year, imports reached nearly US$ 3.4 billion, down 39.15% from H1 2014.
Import deal value dropped mostly for oil and oil products. The commodity’s international prices today are much lower than last year. However, imports increased for liquefied natural gas, calcium phosphate and some types of plastic.
*Translated by Gabriel Pomerancblum
