August 28, 2008

Brazilian agribusiness exports rose 30 percent in the first seven months of the year, despite a weak US dollar due to high commodities prices for goods such as soy.

Agribusiness exporters brought in US$41.7 billion from January to July 31, according to the National Confederation of Agriculture (CAN), a commercial farm association.

High soy prices helped compensate for dollar weakness. Soy export revenue rose to a record US$11.9 billion, up 76.6 percent from the year-ago period. Soy exports rose 7.9 percent, but higher prices for soy on the CBOT really made all the difference, said Matheus Zanella, CAN's technical director for the group's national trade commission.

Brazil is the world's No. 2 soy exporter behind the US. Monthly revenue from soy exports often surpasses that of manufactured goods.

Beef and chicken exports are also rising, with another record-breaking year for Brazilian food exporters likely. Chicken export revenue rose around 45 percent to US$3.7 billion in the first seven months of 2008 thanks to higher prices for chicken meat as animal protein demand continues unabated in new markets, such as the Middle East.

Beef export revenue rose 18.2 percent to US$3 billion so far this year despite EU's restrictions on Brazil beef exports.

Ricardo Cotta, one of CAN's directors, said he expected Brazil's farm economy to bring in BRL288.6 billion (US$175.8 billion) in 2008, or 28.9 percent more than 2007.