Brazils weight grows in livestock exportation
Valor Econômico
Brazil continued increasing its share in the international agribusiness trade in the decade ended in 2007, while players such as the United States, the European Union, Australia and Argentina lost markets, according to a survey of the World Trade Organization (WTO) on the participation of its members in the commerce of this sector. The study also shows that new countries have recently entered in the list of the major exporters, such as India (sugar and beef), Ukraine (grain), Belarus (skim milk powder), China (whole milk powder) and Chile (fruit and vegetables). And there are traditional exporters in new niches, in the case of the American strengthening in the butter market.
In general, the global agribusiness exports have tripled in 20 years until 2007, last year with all data available. Between 1986 and 1990, the annual average reached US$ 195 billion; two years ago, when the prices of commodities were in steep increase influenced by the demand of emerging countries like China and India, it reached US$ 573.5 billion.
The survey of the WTO shows the predominance of Brazil in several segments and it helps understanding why the country has difficulties in wrapping up trade agreements. Even in periods of unfavorable foreign exchange rate to the exports, such as the current period, the Brazilian competitiveness is big and, in some cases, it hinders potential partnerships.
The Brazilian exports of beef, for example, increased 413.6% from 1999 to 2007, and its share in the international market leaped from 6.8% to 28.4%, in spite of rates that, many times, are prohibitive as those in force in Europe. The domain of Brazil has also been consolidated in the export of poultry, market in which the share of the country nearly tripled - from 12.6% in 1999 to 35.5% in 2007. In pork, the Brazilian growth was huge, going from 3.3% in 1999 to 14.9% in 2007.
Nor is there surprise in the sugar market. The participation of the Brazilian exports in the global total went from 31.2% to 42.1%. In the market of oil seeds, which includes soy, the Brazilian exports represented 27% of world total in 2007, compared to 16% eight years before. In grains, Brazil went from zero to reach 6.1% of world exports in 2007, because of corn. In whole milk powder, Brazil went from zero to 2.4% of the world exports between 1999 and 2007. In fruit and vegetables, Brazil has kept a 3.7% share.