Brazil's Agricultural Exports This Year Is Expected To Reach 120 Billion U.S. Dollars, China's Meat Imports Make A Big Contribution

According to data from the Brazilian Federation of Agriculture and Livestock (CNA), Brazilian agricultural exports from January to November 2021 reached 110.7 billion U.S. dollars. It is estimated that by the end of this year, it will generate 120 billion U.S. dollars in revenue. Despite the interruption of the beef trade for three and a half months, China is still the main export destination of Brazilian meat products.

Brazil’s "São Paulo Page" reported on December 27 that this year will be the third time that Brazilian agriculture has achieved an export value of more than 100 billion U.S. dollars. In 2020, the export value will be 101 billion U.S. dollars.

During this year, the agricultural and animal husbandry trade reached a better balance: the high export volume was achieved not only because of the export volume, but also because of the higher purchase prices in the external market. This means that the demand for all major Brazilian agricultural and livestock products in foreign markets remains strong.

Brazilian agriculture has set a number of records this year. The biggest highlight is the export of soybean products, including soybean kernels, soybean meal and soybean oil. Sales of soy products this year are expected to reach 48 billion U.S. dollars, much higher than last year's 35 billion U.S. dollars. In fact, soybean exports have not changed significantly, but prices have increased. Although Brazil is in the non-production season and the United States is at the end of the harvest season, Brazilian soybean exports continued to rise in the last few months of this year.

In meat products, although China suspended imports of Brazilian beef products from September to mid-December, meat exports by the end of this year will still reach a record 20 billion U.S. dollars. At the beginning of the second half of this year, the volume of Brazilian beef purchased by China has reached a record high. Subsequently, due to cases of atypical mad cow disease in Brazil, China-Brazil beef trade was suspended.

At the same time, China's demand for pork remains strong. In order to better meet the needs of the domestic market, China has imported more pork products. Brazil's pork exports this year are expected to exceed 1.1 million tons, half of which will go to the Chinese market.

In 2021, the total export volume of chicken meat may reach 4.5 million tons, with sales reaching 7.5 billion US dollars. Although China has reduced its purchases, it still accounts for 15% of Brazil's total exports.

The third largest export product is forestry products. The total export volume this year will be 13.7 billion U.S. dollars, much higher than the 11.4 billion U.S. dollars of the previous year. There is a greater demand for wood (especially logs) in foreign markets.

In addition, the revenue of the sugar alcohol industry is also very impressive. Annual sales may reach 10.2 billion U.S. dollars, but there is little change compared with 2020.

Due to the high demand for coffee in foreign markets and the reduced supply in some major producing countries, the price of coffee has risen this year, which brought Brazil's coffee exports to 6.3 billion US dollars at the end of the year.

Corn is one of the few products whose export performance was far below expectations this year. The total export volume is expected to be close to 40 million tons. However, the drought in Brazil has affected the corn harvest in the non-production season, and the external sales volume is 20 million tons lower than expected.