According to a recent report on the Brazilian agribusiness industry in the month of June, there has been a slight decrease of 0.7%. The Secretariat of International Relations of the Ministry of Agriculture, Livestock and Supply announced that these June reports had a slight disparity from those of last years. These report findings were supported by Flavio Maluf the president and chief executive officer at Eucatex. Read more about Flavio Maluf at Wikipedia.
Whereas the agribusiness sector registered a sales total of US $9.21 billion in June 2017, they only managed to reach 8.17 billion in June 2018. According to Flavio Maluf, these results were brought about by the steady balance of trade in the agribusiness. He further points out that since the major importer of Brazilian agricultural products is China therefore, this slight decrease was to be expected.
According to Flavio Maluf, the major export to china and the Asian region has been cellulose and soybeans. In fact, he further outlines that by June 2018, soy exports made up more than half (53.5%) of the agribusiness export. This sector is also heavily supported by four other major categories of exports such as meat 8.3%, coffee 3.95, forest products 14.4% and sugar-alcohol complex 7%.
Aside from the Asian region, the second biggest importer of Brazilian agricultural products is the European Union. Flavio Maluf pointed out that in June alone, the region registered an increase of Brazilian agricultural products. He goes on to break the report as follows, green coffee (U.S $17.64 million), pulp (U.S $60.36 million), orange juice (U.S $35.40 million), soybean meal (U.S $94.70 million).
Another survey conducted by the Brazilian Supply Company on the 2017/2018 harvest revealed that due to the favorable trade balance in the agricultural business, soybean production is expected to skyrocket and reach 119 million tons. These findings were also supported by Flavio Maluf who also projects that this year’s soybean production will exceed the volume of the past period by 5.6%.
Flavio Maluf reports that between the months of January and June, 46.27 million tons of grain has been shipped by Brazil. This has created a revenue of U.S $18.43 billion so far.