In a year of records, Brazil gains ground from the United States – 12/12/2023 – Vaivém

In this month’s global supply and demand report, the USDA (United States Department of Agriculture) pointed out that Americans are losing important space in agriculture in traditional markets.

One of those entering the American space is Brazil, says the United States government agency. The comparison of the export behavior of the two countries to the Chinese market highlights the strong evolution of Brazil.

China, which is among the world’s main food importers, is important for both Brazil’s and the United States’ trade balance.

Americans lose space in grains and meats for several reasons. One of them is political. Donald Trump’s confrontation with large commodity importers, mainly China, opened the way for other competitors during his government.

The Chinese, like Trump, placed tariff barriers on US products during the period of their government. The country lost space and opened up to others.

The Americans also had periods of low product supply, due to crop failures, which reduced their export capacity. They also lost in terms of prices, both in grains and meat.

The United States could see a rebound in corn next year. In the first, competition with Brazil will be intense, as long as the off-season responds with good production. China, which purchased 34 million tons of cereal in 2021 and 2022 from the United States, purchased only 4.8 million of the product from January to October.

Brazil, after the Chinese opened its doors to Brazilian corn, sold 1.16 million tons last year and 11.4 million this year until November.

Brazilian participation in the Chinese market is no longer just soybeans, as it was five years ago, and has spread across a range of products previously offered by Americans.

Over the past five years, the United States has exported 135 million tons of soybeans to China. Brazil placed 300 million in the same period in that market.

In the meat sector, Brazil also arrived later in the Chinese market, but Brazilian sales total 9.61 million tons in the last five years, 79% more than the 5.37 million exported to the Chinese by Americans.

Prices and available supply of products were essential for Brazil to reach this level of sales to China. This year alone, soybean sales to the Chinese already total 71.2 million tons. Adding the volumes to other markets, Brazilian oilseed exports will exceed 100 tons this year.

Record The volume of grains and bran that will leave Brazilian ports is expected to reach 183 million tons this year, 25% more than in 2022, according to estimates by Anec (National Association of Cereal Exporters). The numbers only consider soybeans, soybean meal, corn and wheat.

Record 2 Only soybeans, if this month’s 3.9 million tons are confirmed, will reach 101 million tons in 2023. Corn could rise to 56.7 million; wheat, for 2.4 million; and soybean meal, for 22.5 million, according to Anec.

Sustainability Tereos, in the sugar, ethanol and electricity sector from sugarcane biomass, neutralized 100% of carbon emissions from electricity consumption at the São Paulo Biennale, held in Ibirapuera Park.

Sustainability 2 According to the company, neutralization occurs through credits generated from the I-REC certification, a system that allows Tereos to guarantee that the energy produced in its units comes from renewable and clean sources.

Sustainability 3 Certification generates renewable energy credits that can be sold. Each 1MWh of renewable energy generated by the company is equivalent to 1 I-REC (renewable energy credit) that can be traded.

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