Drop in demand and prices drives down agribusiness surplus
Agribusiness has been unable to help the country's balance of trade recover this year.
Traditionally regarded as Brazil's main source of revenue, agribusiness has been unable to help the country's balance of trade recover this year. From January to October, the country's imports ($193.83 million, down 3.7% from the same period in 2013) added up to $1.87 billion more than the exports ($191.96 million). Data were released by the Ministry of Agriculture, Livestock and Supply.
From January to October, exports in the agribusiness sector totaled $83.9 billion—down 3% from its year-before equivalent ($86.4 billion). The reduction in commodity prices and in the volume of goods made an impact on agribusiness—one of the most competitive sectors of Brazilian economy.
Agribusiness imports also shrank in 2014. In the first ten months of the year, the sector imported $14.1 billion, 1.2% less than the same period in 2013 ($14.3 billion). The drop in exports, proportionally larger than its imports counterpart, was harmful to the balance of trade this year. The surplus in agribusiness fell from $72 billion to $69.8 billion.
As regards volume, of the 15 categories surveyed, seven experienced a drop in the amount exported, most notably cereals (-29.5%), tobacco (-24.4%), sugar and ethanol (-15.6%). As for the average prices, the most dramatic plunges were reported for cereals (-18.6%) and the sugar-alcohol complex (-11.9%).
Agribusiness imports also shrank in 2014. In the first ten months of the year, the sector imported $14.1 billion,
In spite of the country's lower sales overseas, some products have been showing very positive results this year. Benefited by a rise in volume as well as price, coffee exported rose 20.7% and those of the soy complex (beans, meal and oil) increased 3.5%. Meat exports are also on the rise throughout the year so far, especially after the embargo with Russia was lifted.The accumulated rate stands at 4.1%.
In the October-on-October comparison, agribusiness in Brazil has also shown a decline, with exports totaling $7.95 billion, down 5.7% from October 2013 ($8.42 billion). Imports, in turn, fell 11.3% from $1.62 billion to $1.44 billion in the same analysis.
Translated by Fabrício Ferreira
Fonte: Wellton Máximo reports from Agência Brasil
