July 30, 2007

Meat, ethanol and soy push Brazil's agri exports' rise to 36.5 percent in 1H

Revenue from Brazilian farm commodities accounted for 36.5 percent of the country's total export revenue in the first half of 2007, up from 35 percent in the first half of 2006, the National Agriculture Confederation, or CNA, reported late Thursday (July 26).

Meat, soy, sugar and ethanol export revenue was the driving factor, with revenues rising 25.3 percent for those combined commodities.

"The rhythm of agribusiness export growth has surpassed that of all other export items in Brazil," said Antonio Donizeti Beraldo, an economist with CNA.

Export revenue from agribusiness has been a key contributor to record trade surpluses in Brazil. As of July 22, Brazil's trade surplus was US$23.02 billion.

The trade surplus is one of the factors contributing to a strong local currency, which has proven problematic for Brazilian farmers whose commodities are priced in a weakening US dollar.

Soybeans are often Brazil's No. 1 monthly export item by value, surpassing costly aviation equipment. Brazil is a leading exporter of sugar, ethanol, coffee, beef, chicken, orange juice and is the No. 2 soy exporter behind the US.