Brazil commodities sales to Arab nations soar as importers stock up on food
Brazilian exports to the 22 countries in the League of Arab Nations rose in the first quarter amid a spike in agricultural commodities prices and a drive to stock up on food, according to a statement sent to Reuters on Tuesday.
Brazil’s total exports to the group reached $3.86 billion in the period, an almost 34% increase from the same time a year ago, the statement from the Arab-Brazil Chamber of Commerce said.
A boost in sales to the Arabs nations also reflects Russia’s and Ukraine’s reduced participation in the global grains and fertilizer trade, the statement noted, referring to two major suppliers of products like wheat and sunflower oil.
Iron ore, which accounts for most of Brazil’s sales to the Arab nations, stood at $690.29 million in the first quarter, a fall of 12.5% year-on-year. On the other hand, strong demand for food products worked in favor of domestic exporters, who made a windfall.
Chicken meat sales rose by almost 11%, to $591 million, while sugar sales jumped almost 20% to $588.8 million in the first three months of the year.
Soy products sales soared 122.8% to $318 million, while wheat exports stood at $285.86 million, marking a 438.06% jump.
Brazil also boosted corn and frozen beef sales by 27.21% and 165.73%, respectively, to the Arab nations, according to the data.
The Brazil-Arab Chamber said nations outside the Arab world are keen to guarantee food supplies, a boon to Brazilian food exporters.
However, the Chamber expressed concern that a potential drop in fertilizer imports from Russia and Belarus, hit by Western sanctions, could negatively impact Brazil’s 2022/2023 grain crop.
Source: Reuters (Reporting by Ana Mano Editing by Marguerita Choy)