Recently, the Secretariat of International Relations of the Ministry of Agriculture, Livestock and Supply released reporting results for exports from Brazilian agribusiness for the month of June. The figures showed a decrease of 0.7% compared to the same month last year, which would seem to show Brazilian agribusiness exports to be on the decline. Brazilian businessman Flavio Maluf, however, who delivered the results, seemed to have a very different take on the figures.
As both the CEO of a thriving international business and the son of a beloved Brazilian politician, Malufin particular is in an excellent place to shed additional light on what would seem to be rather dismal figures. To begin, Maluf pointed out that part of the movement in June was due to a simple balance of trade in agribusiness, which totaled US $ 8.17 billion (+ 0.7%). Learn more at mundodomarketing.com about Flavio Maluf
Out of the total exports in June of 2018, soy accounted for more than half, reaching 53.5% of all exports. The two main recipients of those exports are Asia (predominantly China) and the European Union, which is currently comprised of 28 countries. In the EU in particularly, sales of soybean meal actually showed an increase of US $94.70 million.
In addition to the increase in sales of soybeans, the most recent survey compiled by the Brazilian Supply Company (Conab), overall soybean production is expected to meet or exceed 119 million tons, which represents an increase of 4.2% on the previous crop. The export projections for this year are that Brazil’s total soybean exports will reach 72 million tons, which is also an excess of 5.6% over the previous period.
Maluf also took pains to stress that from January to June of 2018, Brazil had already shipped 46.27 million tons of the grain, which generated revenues in excess of US $18.43 billion. Those shipments alone represented an increase of 5.2% in bulk and an increase of 10.6% in value. This resulted in an average price increase of 5.1%, which factors in both the value and quantities.