São Paulo – Brazilian exports to the Arab countries generated US$ 1.27 billion in May, growth of 9.16% over the same month last year, according to figures disclosed by the Ministry of Development, Industry and Foreign Trade. Imports totalled US$ 1.12 billion, growth of 27%. In the same comparison, total sales from Brazil climbed just 0.026%, and the country’s purchases on the foreign market rose 2.93%.
Among the main items traded by Brazil in the Arab world, the most prominent was sugar, with growth of 108% in shipment revenues. There was also growth in shipments of beef and poultry (15%), grain like wheat and maize (14%), gold (92%), other grain, like soy and peanuts (341%), as well as soy oil, coffee, tobacco and standing cattle. The sales of iron ore dropped (38%), as did those of machinery and equipment and chemical products.
"This movement was expected,” said the CEO at the Arab Brazilian Chamber of Commerce, Michel Alaby. "The establishment of food stocks [in the Arab world] was rather clear,” he added.
It is common for sales of food to the region to grow in the months that precede Ramadan, the month in which the Muslims fast during the day, but feast in the early evening. Furthermore, Arab nations have been expanding purchases to form stocks and reduce their exposure to the price volatility of agricultural commodities.
In imports, there was growth in the purchases of oil and oil products (46%), inorganic chemical products (311%), as well as electric material, aluminium, glass and fish products. Fertilizer sales dropped 51%, although the purchases of some inputs for the area rose. The import of plastics also dropped.
Alaby stated that most of Brazil’s fertilizer purchases took place in previous months. The growth of imports of oil, according to him, reflect the situation of the Brazilian economy, which is still growing, although at a slower rhythm than early last year.
The executive believes that the performance of trade with the Arabs should maintain the same tendency as in June.
In the accumulated result for January to May, Brazilian exports to the region generated over US$ 5.52 million, growth of 4% over the same period in 2011. Imports grew 34% and reached US$ 4.54 billion over the first five months of 2012. In the same comparison, total sales of Brazil grew 3.43%, and purchases, 6.4%.
*Translated by Mark Ament
