The data released by Abiove (Brazilian Association of Vegetable Oil Industries) regarding the Brazilian soybean crop in the first quarter of 2020 indicate a higher movement than the same period last year. This good result is celebrated by the companies in the sector that expect another year with record volume. Good news for agribusiness amid the covid-19 pandemic.
Figure 1: Exports grow in agribusiness amid the pandemic. Image of charlesricardo by Pixabay
In the first quarter of 2020, Brazil exported around 18,1 million tons of soybeans. This number represents a 15% increase compared to the same period in 2019, when exports were 15,8 million tons.
Figure 2: Export of soybeans. Source: Ministry of Economy/ComexStat. Preparation: ABIOVE – Coordination of Economics and Statistics. ILOS analyzes
The increase of 2,3 million tons was driven mainly by China. In absolute numbers, the Chinese bought 1,3 million tons more in the first quarter of 2020, an increase of 11% compared to the same quarter of the previous year. On the other hand, the European Union had the highest percentage growth, going from 1,4 million tons in 2019 to 2,0 million tons in 2020, which corresponds to a 50% change.
as there was already mentioned in previous post, the BR-163 contributes to a greater volume exported by Arco Norte. The ports of Barcarena and Santarém, both in Pará, benefited from the good condition of the BR-163, significantly increased their volumes. The increase in the first quarter of 2020 compared to last year in Barcarena was 56%, while in Santarém it was 27%.
Figure 3: Soybean exports in Brazil, by port. Source: Ministry of Economy/ComexStat. Preparation: ABIOVE – Coordination of Economics and Statistics. ILOS analyzes
The port of Santos continues to be the main port in the country for the export of soybeans, with an increase of 9%. Paranaguá grew 7% in the period. Among the ports on the southern axis, the one with the highest percentage growth was Rio Grande, with a variation of 138%.
Expectations are good, although 2020 will be marked by downturn in the world economy due to COVID19. Experts believe that the agribusiness sector will be one of those that will go through the crisis without major impacts.
Monica Barros
https://ilos.com.brMonica Barros is a Managing Partner at ILOS. She has more than 20 years of experience in the Logistics area, working in companies such as Shell, Ambev and White Martins. In consulting, she has participated in several types of projects, including Strategic Planning, Development of Logistics Networks, Transport Management, Identification of Supply and Demand.
