November 10, 2005

 

Brazil's agricultural exports hit record US$36.2 billion
 

 

Brazil's Agriculture Ministry said Tuesday that agricultural commodity exports for October rose 17 percent over October 2004 to US$3.7 billion, for a record US$36.2 billion since January, but were down from the US$3.8 billion registered in September.

 

Brazil's agriculture exports continue breaking records on the year, despite liquidity problems on Brazilian farms, and a weak dollar. Between January and October 2004, Brazil agricultural exports totalled US$32 billion.

 

The government said that soy exports rose 37.2 percent versus the same January to October period last year. Brazil exported US$782 million of soy and its derivatives, down from US$835 million in September.

 

Ethanol exports rose 173.8 percent to US$89.8 million in comparison to October 2004, and up from September 2005 sales of US$79.9 million.

 

The numbers are compiled from the Commerce Ministry, which released similar data last week.

 

October meat exports rose 28 percent to US$710.4 million compared to US$554 million last October. Beef, chicken and pork exports were US$622 million last month, but beef export values have fallen from US$209.8 million last month to US$153.9 million in October, according to Commerce Ministry numbers released last week.

 

In a separate statement, Rodrigues said that beef exports will fall in November and December due to a 49-nation embargo on Brazilian beef due to outbreaks of foot-and-mouth disease on several farms in Mato Grosso do Sul, located in center-west Brazil.

 

Commodity exports have been falling steadily from their August high of US$4.3 million. For crops like soybean and coffee, traders and analysts have said that producers are waiting for better prices as the currency exchange remains unfavorable in this low international price environment. The real is trading at 2.2 real to the US dollar, a low for the year.

 

The EU continues to be the top destination for Brazilian agricultural products, up 63.4 percent on the year to US$11.7 billion. Brazil exported US$1.2 billion worth of agricultural commodities to EU nations this month, up from US$1.1 billion in September. The Netherlands is Brazil's largest market in the EU, followed by Germany at a distant second.

 

In the main global markets, only China exports dropped on the month, from US$264 million in September to US$247 million this month. It is worth noting that last October, however, Brazil exported US$125 million in agricultural products to China.

 

US imports of Brazilian food products has risen from US$493 million in September to US$516 million this month and are also up from the US$515 million registered in October 2004.

 

Another major destination for Brazilian commodities, Russia, also considerably increased imports this month. October sales totalled US$230.7 million compared to US$183 million in September and US$134 million last October.