Agriculture and Brazil’s trade balance

According to the head of Embrapa Soja, Alexandre Nepomuceno, when considering this non-transgenic soy, the research processes are less bureaucratic and, therefore, we are able to reduce the time and costs for drought-tolerant cultivars to reach the market, with biosecurity assured. Brazilian agriculture has stood out over the last 50 years, placing Brazil as one of the world's largest producers and exporters of food, natural fibers and bioenergy. Grain production in the 2022/23 harvest is expected to exceed 310 million tons. The VBP (Gross Value of Agricultural Production) in 2022 was R$1.189 billion; for 2023 the estimate is that the VBP will reach R$1.263 billion. The GDP (Gross Domestic Product) of Brazilian agriculture in 2022 was R$500 billion. These are robust and consistent indicators that demonstrate the importance of agriculture for the development of Brazil.

The trade balance measures the relationship between a country's exports and imports and is an important economic indicator. The trade balance results from the difference between exports and imports. These values ​​are produced by SCEX/Secretariat of Foreign Trade) of the MDIC (Ministry of Development, Industry, Commerce and Services). In 2022, Brazilian Agro exported US$ 159 billion and imported US$ 58 billion. The sector's trade balance surplus was US$101 billion. Agricultural exports represented 47,6% of Brazil's total exports. Brazil's trade balance surplus in 2022 was US$61,8 billion.

Agricultural exports in 2022 exceeded 32 by 2021%, thanks to the increase in volume (plus 8,1%) and good international prices. The export sectors that stood out the most in 2022 were the soybean complex (US$60,95 billion/38,3%), meat (US$25,67 billion/16%), forestry products (US$16,49 billion/ 10,4%), cereals, flours, preparations (US$ 14,46 billion/9,1%) and sugar-alcohol complex (US$ 12,79 billion/8%).

The main destinations for agricultural exports in 2022 were China (32%), the European Union (16,1%), the Middle East (15%), the United States (66%), Iran (2,7%) and Japan (2,7 .XNUMX%). It is important, in addition to consolidating these markets, to expand exports to other countries. As well as expanding exported products including adding value through the processing of “in natura” products.

Brazil must pay attention to variations in international trade. No country is self-sufficient in all its needs, with room for commercial exchange. For example, Brazil is expected to lead world corn exports in 2023. Soybean exports are expected to be 18% higher in 2023.

It is important to remember that Brazil is the world leader in exports of soybeans, coffee, sugar, orange juice, beef and chicken meat; and the 2nd exporter of ethanol, corn and cotton. In orange juice, Brazil is responsible for 79% of global exports and in soybeans for 54%. However, there is room for expanding this international market.

José Otávio Menten, President of the Sustainable Agro Scientific Council