March 27, 2009

Brazilian soy exports remain at robust levels, despite the international financial crisis, due to strong oilseed demand from China, the world's largest importer of soy, the Brazilian Agribusiness Association Abag said on Wednesday (Mar 25).

Abag President Carlo Lovatelli said that China is importing 37 million tonnes of soy this year, beyond the 16 million tonnes it produces."

US Department of Agriculture (USDA) expects China to import 36 million tonnes of soy this season, down from 37.7 million tonnes in the 2007-08 year.

Brazil is the world's second soy producer and exporter after the US.

Lovatelli said that Brazilian soy exports were going well this season in terms of volume.

He explained that in local currency terms, revenues from soy exports were roughly on par with last year, but in dollar terms they were down 15 to 20 percent.

According to Abiove, the Vegetable Oils Industry Association for which Lovatelli is also president, Brazil exported 24.5 million tonnes of soy in 2008, just under the record 24.7 million tonnes exported in 2007.

Lovatelli said that production costs had fallen from record highs in 2008, which should stimulate planting in the 2009-10 crops that will be planted in September.

He said the international credit problems affecting the agricultural sector were likely to subside in six months to a year.

Brazil is in the midst of harvesting its current soy crop, which Abiove sees at 57.7 million tonnes, down from the 59.9 million tonnes harvested from the 2007-08 crop.