Minas Gerais agro exports reach US$7 billion in the 1st half of 2023

Minas Gerais agribusiness exports totaled US$7 billion from January to June this year, with 7,6 million tons shipped to 166 countries. The data represents a 9% drop in revenue and an 11% increase in volume compared to the first half of 2022. Foreign agricultural sales were responsible for 36% of the total exported by Minas in the period.

The reduction in agricultural foreign trade revenue in Minas Gerais is justified, especially, by the devaluation of coffee on the international market, which is the main product on the state's export list in the agricultural sector. In addition to the reduction in the price of the commodity, the volume sold was also 22% lower than the first six months of last year.

Isolated, the month of June 2023 reached a value of US$ 1,2 billion, with 1,4 million tons sent outside the country. Comparing these numbers with the same period from the previous year, there was a 16% decrease in value and a 5% increase in the quantity exported.

For the Undersecretary of Agricultural Policy and Economy of the State Secretariat for Agriculture, Livestock and Supply (Seapa), Caio César Coimbra, the outlook for the coming months is one of recovery. “With the coffee harvest coming to an end in August, the expectation is for an increase in shipments of the product in the second half of the year. As it is the flagship of the Minas Gerais agricultural trade balance, this will reflect in positive results for the state’s economy”, he analyzes.

The projection is that 27,8 million bags of coffee will be produced in the 2023 harvest. The number is 27% higher than that obtained last year, when producers suffered crop losses due to climatic difficulties.

In the first six months of 2023, 642 different agricultural products from Minas Gerais were traded internationally, with an average price of US$920,36 per ton. The main destination for shipments was China (36%), followed by the USA (8%), Germany (6%), Italy (4%) and Japan (4%).

Café

Leader of exports in the agricultural sector of Minas Gerais, coffee has played a crucial role in the state's total agribusiness revenue from foreign trade, representing 36% of the total value. In the first half of this year, the product earned US$2,6 billion, with shipments corresponding to 11 million bags. There were drops of 26% in price and 23% in volume sent outside Brazil.

Among the buyers of the commodity, the following stand out: United States (US$ 473 million), Germany (US$ 399 million), Italy (US$ 232 million), Belgium (US$ 169 million) and Japan (US$ 166 million) .

Soy Complex

The soybean complex, which includes grains, bran and oil, remains one of the main products in the agribusiness export catalog in Minas Gerais, achieving revenue of US$ 2,3 billion with the sale of 4,3 million tons. The sector recorded growth of 12,6% in quantity, while the value remained stable, with a small reduction of 0,4%.

Soybeans, at the forefront of the segment, maintain a good output pace, driven by purchases from China (79%), Thailand (5%), Iran (5%), Argentina (5%), Taiwan ( 4%) and Vietnam (2%).

The increase in the volume of soybean exports is due to the record harvest of the grain in the state and the increased demand for the product abroad.

Sugar and alcohol complex

The sugar and alcohol complex represented 9% of Minas Gerais agribusiness foreign trade in the time frame. Sugar, alcohol and other sugars generated US$606 million for the state. The positive result was mainly driven by sugar, which comprised 90% of the sector's international sales, reaching the milestone of US$549 million. The performance is a reflection of low global supply.

Forest Products

Foreign trade in forest products (cellulose, wood, paper and rubber) totaled US$593 million and 835 thousand tons, with an increase of 49% in revenue and 17% in volume. The sector advances at a fast pace, achieving consecutive records, resulting from the performance of cellulose, in particular.

The largest importers of forest products from Minas Gerais in the first half of the year were: China (US$ 261 million), the United States (US$ 72 million), the Netherlands (US$ 63 million), Italy (US$ 51 million), and Indonesia ($33 million).