China takes 37% of agro exports and diversifies imports – 07/17/2023 – Vaivém

China increased its participation in Brazilian exports of products related to agriculture and livestock in the first half of this year. Of the US$ 83 billion in revenue collected by Brazilians, 37% came from the Chinese. In the same period of the past, it had been 35.5%.

One of the novelties in this increase is that there is a diversification of imports, although in very small proportions in relation to the soybean leader.

China opened its doors to corn from Brazil and, in the first half of this year, purchased 1.34 million tons, worth US$ 374 million. In the first half of 2022, the Asian country still did not purchase the Brazilian product

The Chinese also increased their imports of peanuts and peanut oil and doubled their purchases of green coffee, according to data from Secex (Secretary of Foreign Trade). China took 19,300 tons of unroasted coffee from Brazil from January to June this year.

In the case of soybean oil, although the Chinese have preference for importing soybeans, purchases from the Asian country rose to 133,000 tons in the first half, 57% more.

The highlight continues to be purchases of soybeans, which increased to 43.5 million tons in the year. The drop in oilseed prices on the international market further opened up the appetite of the Chinese.

With this year’s purchases, they left US$ 23.1 billion in Brazil, just with soybeans. Last year, the value had been US$ 20.3 billion in the same period. The USDA (United States Department of Agriculture) predicts that the Chinese should import close to 100 million tons of the product in the 2022/23 harvest, a volume that should be repeated in the following.

Soy begins to cooperate more and more for the advancement of the agribusiness trade balance. This year, Abiove (Brazilian Association of Vegetable Oil Industries) estimates that revenues from the soy complex (grains, bran and oil) could reach US$ 67 billion.

This volume of foreign currency is due to record exports of 94 million tons of grains and 21 million tons of soybean meal, according to estimates by the association.

Brazil has in its favor this year the record harvest of 156 million tons it obtained. United States and Argentina, direct competitors, experienced a crop failure. In 2023/24, the Argentines may return to normal production of 48 million tons —this year there were only 25 million—, while the North Americans should remain at the same level.

China also increased purchases of meat from Brazil, mainly chicken and pork. With the drop in average international prices, Chinese spending this year dropped to US$ 4.1 billion on animal proteins, down from US$ 4.7 billion last year.

Chinese spending in Brazil grew more with food purchases than with other products related to agribusiness, such as wood. In the case of food, the evolution was 9% in the first semester, well above the 4% of other products in the sector.

Considering the main economic blocs of commercial relationship with Brazil, the Asians increased purchases of food, but decreased those of products related to agriculture and livestock. The same happened with North America, another important trading partner of Brazil.

The Europeans, on the other hand, reduced imports of both food and other agribusiness products.

In the food sector, South American countries increased purchases, with spending rising to US$ 4.7 billion. Africans, on the other hand, maintained stable imports at US$ 4.3 billion in the period.

Cotton is one of the main reductions in Brazilian sales to China this year. Exports fell to 48,000 tons, the lowest volume in five years. As a result, China occupied only fourth place in the ranking of imports of Brazilian fiber. In 2021, it occupied the top of the list, and, in 2022, the second position.

PRESENT LINK: Did you like this text? Subscriber can release five free hits of any link per day. Just click the blue F below.