April 8, 2016
Ag Products Account for One-third of Brazil Current Exports
A weaker currency is being credited for the increase of agricultural exports from Brazil during the first three months of 2016. For the period of January through March of this year, agricultural products accounted for 33% of all Brazilian exports. Eight out of the top ten exports were agricultural products and the leading export from Brazil during the period was soybeans.
In terms of percentage increase in total value, soybeans came in number one with an increase of 46% compared to the first three months in 2015. Second was corn which was up 110% followed by cellulose up 13% and beef up 11%. Beef exports were helped by the reopening of markets in China, Saudi Arabia, and Iran in 2015 to fresh beef from Brazil. At the start of 2016, five more beef processing facilities were certified to export beef to China bringing the total to 16 facilities.
The Agriculture and Livestock Confederation of Brazil (CAN) is expecting the Brazilian currency to continue weakening during 2016, which should help to support agricultural exports. It is unclear if that will be the case or not. The Brazilian currency has actually strengthened over the last several months as it became more probable that President Rousseff would be impeached by the Brazilian Congress. The conventional wisdom is that anyone other than her would do a better job of pulling Brazil out of its deepest recession in recent memory.