October 29, 2012

BrazArtis to increase soy, corn exports to Middle East

Following Brazil's growing grain harvest and exports, BrazArtis, an import-export company based in Rio de Janeiro, Brazil, is set to expand its soy and corn exports to the Middle East.

Driven by soy and corn production, Brazilian grain harvest is estimated to exceed 180 million tonnes from 170 million last year. The soy harvest alone for 2012-13 is set to increase by 20% and reach 81 million tonnes, from 66 million last year. Ranked as the second agricultural commodity export from Brazil, corn production is set to increase by 7% from 66 million tonnes to 70 million tonnes.

In the period of January-August of this year, Egypt has increased its purchases of corn by 899.4%, from 90,310 tonnes in 2011 to 902,550 tonnes in 2012, according to Scot Consultoria. Saudi Arabia has increased its purchases of corn from 159,770 to 402,190 tonnes in the same period, an increase of 151.7%.

Jan Dabrowa, Business Development Director at BrazArtis, said, "The value of the Brazilian agribusiness has reached a peak, and it is set to reach US$100 billion in 2012. Current exports of oilseeds are being fuelled by changing market dynamics that have set the stage for another successful harvest in 2013. In light of the decreased exports by Argentina and unfavourable weather conditions that affected the US crops, Brazil took up a leadership role as one of the main producer and exporter of soy and corn."

On another hand, corn exports to Iran decreased by 26.9% from 951,890 to 695,620 tonnes, but the country still stands as one of the leading importers of Brazilian corn in the Region.

The exports of soy in 2012 are set to reach 17.5 million tonnes, a 20% boost from 2011. In 2013, a provision for 10% increase in planting and 11% improvement in average productivity should result in 27.5 million acres planted and potential harvest of 81 million tonnes of grain. Approximately 48% of the total production, equivalent to 39 million tonnes of oilseed will be destined for export.

It is projected by the Brazilian Ministry of Agriculture that the agribusiness exports will reach a record of US$100 billion in 2012. In 2010 Brazilian agricultural exports surpassed US$76.4 billion worldwide, an 18% increase from 2009. They attained a new record in 2011 by totalling US$94.59 billion, 24% higher than in 2010.

Brazil's exports span across the whole GCC region including KSA, UAE, Qatar, Jordan, Bahrain, Kuwait, Lebanon, Syria and Oman.