Production volume and dollar should guarantee record exports in agriculture in 2020

High Brazilian production and the high exchange rate will continue to favor exports of agribusiness products in the coming months. In this way, both the volume and revenue in reais from agricultural exports could reach records in 2020.

This was the conclusion of a new survey carried out by the Center for Advanced Studies in Applied Economics (Cepea), at Esalq/USP, which was based on data from the Secretariat of Foreign Trade (Secex).

According to Cepea, from January to September 2020, the volume exported by the sector grew by more than 16% compared to the same period in 2019, reaching a record in the historical series.

In dollars, agriculture earned, in the first nine months of 2020, US$79 billion, an amount 8% above that recorded between January and September 2019.

The increase in the amount, according to Cepea, is related to the greater volume exported, considering that average prices in dollars fell 6% in the first nine months of 2020 compared to the same period of the previous year.

In national currency, revenue grew 26% in the same comparison, and was favored by the devaluation of the real against the dollar, of almost 16%, reported the research center.

Shipments

The increase in shipments of products from the soy complex, meat, the sugar and alcohol sector, as well as cotton, fruit and wood, boosted foreign sales, according to Cepea researchers.

In the case of soy complex products, increases in shipments in 2020 were 32% for soybeans and 7% for bran and oil.

Sugar has been a big highlight this year, with a strong increase of 71% in exports. Due to strong international demand, foreign sales of ethanol grew 27%.

Cotton lint exports continue to perform well, with an increase of 59%. Meat has also enjoyed a good period in sales abroad, with increases of 47% for pork, 18% for beef and 3% for poultry.

Shipments of fruit (8%), wood (5%) and coffee (1%) also increased. The products that registered declines in shipments were: paper and cellulose (-2%), orange juice (-9%) and corn (-30%).

Destinations 

China has increased its share of Brazil's total sales each year. From January to September, 37% of the total sold by Brazilian agribusiness abroad was destined for the Asian country. Eurozone countries maintained a share of 14,30%, and the United States, 6,30%.

See here the latest analyzes of agricultural exports released by Cepea.