Brazil has record food exports to Africa – 02/14/2024 – Vaivém

Africa, the continent being visited by Luiz Inácio Lula da Silva (PT) and which has the current president’s sympathy, is buying more food from Brazil. In 2023, it was US$9.8 billion, a record amount and well above that of previous years. With the acceleration of Brazilian exports in the sector, however, the participation of Africans still remains at 7% of the total exported by Brazilians.

At the beginning of the 2000s, Africa’s presence in Brazilian imports was US$525 million, representing 4% of the country’s total food exports. It rose to 11% in 2011, but fell back to 6% in 2019.

African countries look more for sugar, corn, meat and soy, although coffee, even with production in countries on that continent, is also on the list. Spending on sugar totaled US$4.7 billion last year, followed by corn and meat, with a total of US$1.5 billion each.

Exports of live animals, a very active sector five years ago and which gained ground in Africa, had been losing relevance, especially during the pandemic period. Egypt, an important partner in this item, had purchased live cattle worth US$56 million in 2019, but reduced purchases to US$928,000 in 2021. Last year, it returned to US$33 million.

The Egyptians are one of the most important trading partners of Brazilian agribusiness on the continent, being responsible for 17% of African imports in Brazil. Last year, the African country purchased 1.13 million tons of sugar and 1.62 million tons of corn, in addition to 130 thousand tons of beef and chicken.

Brazil loses space in dairy exports. Sales of condensed milk, cream and other concentrates, which reached 20 thousand tons in Africa, fell to an annual average of 816 in the last four years. Last year’s total dairy sales were the lowest since 1999. Volume fell to just 1,287 tons, and the value fell to US$3.4 million.

On the other hand, egg exports reached record levels. There were 6,563 tons last year, worth US$ 26 million, according to Secex (Secretariat of Foreign Trade). Egypt had little participation in these purchases, which were basically made by Senegal and South Africa.

The main partners of Brazilian agribusiness on the African continent are Algeria, with imports of US$2.2 billion in 2023, and Egypt, which purchased food worth US$1.6 billion. Morocco and Nigeria come next, with US$1.2 billion and US$851 million.

Lose in the bull... Last year’s U.S. beef exports represented 11.3% of production. This year, according to projections from the USDA (United States Department of Agriculture), it should be 10.6%

…win in chicken Chicken exports rise to 25.4% of the volume to be produced, up from 25% in 2023. The share of external sales of pork also increases, rising to 9.5% of production, up from 9% in last year.

Brazil changes Marketplace Brazilian beef exports to the United States are reshaping the American market, increasing supply basically in the first quarter, when Brazil is still filling the tariff-free quota to which it is entitled. This year, sales already amount to 71% of this volume.

Competitive Even with the quota exhausted, Brazil maintains exports, albeit at a slower pace. The Brazilian product is quite competitive in relation to that of other suppliers, according to USDA analysts.

Rhythm smaller Soy exports are expected to total 7.3 million tons this month, according to Anec (National Association of Cereal Exporters), below the volume of the same month in 2023.

Smaller rhythm two Foreign sales of corn, after the record in 2023, are also starting at a slower pace this year. February exports are expected to fall to 742 thousand tons, well below the 1.9 million in the same period last year.

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