Brazil assumes world leadership in soybean meal exports – 07/20/2023 – Vaivém

This year, Brazil assumes yet another world leadership in the agribusiness sector. It will be, for the first time, the world’s largest exporter of soybean meal.

The country also resumes world leadership in maize this year. These two products are added to coffee, soy, sugar, orange juice, cellulose and beef and chicken.

Traditionally in second place, Brazil will take the place of Argentina, which, due to the severe weather effects on its soybean crops, will not be able to maintain the level of exports of previous years.

According to data released this Thursday (20th) by Abiove (Brazilian Association of Vegetable Oil Industries), Brazil will export 22 million tons of oilseed bran this year.

Argentina, according to information this Wednesday (19) from the Buenos Aires office of the USDA (United States Department of Agriculture), will place only 18.7 million tons of bran in the commercial harvest of 2022/23.

The comparison periods have a slight difference, since the commercial year considered by the USDA is from October of one year to September of the following. Abiove data considers the entire year of 2023.

Based on the pace of Brazilian exports from October to June, already consolidated data, and expectations from July to September, Brazilians should exceed 21 million tons during the period considered by the USDA. The North Americans occupy the third place, with 13 million tons.

The Argentines lose space in the world market because they had a drastic reduction in soybean productivity and, consequently, a drop in the volume produced. It is the smallest in two decades.

With annual production close to 50 million tons, Argentina should end the 2022/23 harvest at 21.2 million tons, according to the most recent forecasts by analysts at the USDA office in Buenos Aires.

The drop was so intense that the neighboring country has already imported a record 3 million tons of soybeans into Brazil in the first half of this year. In previous years, this volume was close to 200 thousand tons.

While the Argentines suffer from the intense crop failure, the Brazilians obtain 156 million tons this year. With that, internal crushing rises to 53.5 million, generating 41 million bran.

This record production volume will allow Brazil to reach 22 million tons of bran, when considering exports from January to December. Oil production also rises, reaching 10.8 million tons, according to Abiove data.

Soy has been giving strength to the Brazilian trade balance. This year, the soy complex (grains, bran and oil) should yield US$ 67 billion for the country. In 2021, it was US$ 48 billion and, in 2022, US$ 60 billion.

saved agriculture The GDP (Gross Domestic Product) of the first quarter of the year had a strong participation of agriculture, mainly in the regions more dedicated to the countryside.

Farming saves 2 The sector’s GDP, according to the IBGE, grew by 21.6% from January to March, compared to October and December of last year.

Agriculture Salva 3 4intelligence broke down the data, by region, and found that those more focused on agribusiness had greater evolution.

Midwest The region had an evolution of 5.2% in the average GDP, a rate driven by agriculture. Large concentration of agricultural and livestock production, the region registered GDP of 30% in the first quarter in the sector.

North A new agricultural frontier, the region had a 17.5% increase in the agricultural GDP, supporting a 4.9% growth in the average GDP.

South Traditional in agriculture, the region grew by 13.3% in the sector, sustaining 4% in the overall GDP. The Southeast had an evolution of only 0.6% in average GDP and 9.2% in agriculture.

North East For the region, 4intelligence found an increase of 11.3% in the GDP of agriculture and livestock, allowing for an increase of 5% in the average GDP.

agricultural recovery For Bruno Lavieri, chief economist at 4intelligence, the continued recovery of agricultural production is one of the factors behind these positive results for the national GDP.

Exports The volume of foreign sales grew, but some sharp drops in prices on the foreign market did not allow for a greater evolution in the balance of trade.

Exports 2 According to Radar Agro, from Itaú BBA, the price of soybean oil fell by 31% in the first half, compared to the same period last year. Soy and beef, important for the balance, fell 8% and 19%, respectively.