Seven out of the ten products most exported by Brazil in the 1st. half are agribusiness
Despite the positive results in the trade balance, foreign trade of the country has shown strong deceleration. There was a decrease of US $ 29.6 billion in trade between Brazil and decrease of 4.3% in exports, according to information from the National Confederation of Agriculture and Livestock of Brazil (CNA).
The government has highlighted international trade as a priority for economic recovery. The agribusiness sector has been the largest contributor to the trade surplus in the first six months of 2016. The highlight can be seen in the composition of the 10 main Brazilian products exported in the period.
In the first half of 2016, these products have brought to Brazil US $ 41.6 billion in revenue, 46% of the total. Of these, seven are agribusiness, US $ 29.9 billion (33.2%) of total Brazilian exports.
During the period, the highlights of agribusiness were:
· Soy beans, US $ 13.9 billion (+ 11%), appearing as the main
· Raw sugar, US $ 3.1 billion (+ 19%) in 4;
· Pulp, US $ 2.7 billion (+ 7%) in 7,
· Beef, US $ 2.2 billion (+ 6%), 8th.
The increase in sugar exports is also influenced by the appreciation of world commodity price due to lower supply and increased demand, which will create a deficit in the current cycle. Another factor that encouraged the growth of prices was the recent depreciation of the dollar against the currencies of producing countries.
Despite the slower growth of the Chinese economy, demand for beef quality in that country should remain strong in the second half. This is why this type of cut is demanded by consumers of higher income, which are less influenced by the economic downturn.
China, the world’s second largest economy, was the main destination of exports from Brazil in the first half of 2016 with $ 11.4 billion in revenue (17.2%). The country still has a key role in Brazil’s trade balance, particularly in relation to demand for agricultural products.
The data present a scenario with good opportunities for agricultural producers in Brazil, mainly due to strong demand and favorable exchange. Thus, in 2016, the sector remains a key element in the performance of the country’s trade balance.
Source: Comex do Brasil
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