Brazil: New export destinations are needed to fully recover export
The report gives some reasons for the decline in exports. The most important one is the climate that is affecting important crops such as melons, papaya and apples. These climate problems are recurring. Other reasons for the decrease of exports are the result of quality issues, the recovery of domestic prices, the currency exchange and the Real appreciation and other factors that are caused by tax and economic policies.
According to INBRAF new markets are necessary to increase exports again, as the current export markets for Brazilian fruits are stable or even declining. However, these emerging markets for our fruit export are demanding and need phytosanitary and free trade agreements to be made.
Fresh Fruit
The trade balance of foreign trade in August 2016 shows a negative balance of US $6.22 million, against a surplus of US $5.98 in august 2015. For the trade balance accumulated from January till August 2016, also shows a negative balance, which is higher than during the same period in 2015. These are the result of the increase in imports and decrease in export in August as well for the accumulated numbers for this year.
Export fresh fruits
Export of fresh fruits in August 2016 declined 3% in volume and increased 4.4% in value compared to August 2015. In the accumulated numbers of January to August, exports also showed a decrease of 5.1% in volume and 2.6% in value over the same period of 2015. INBRAF explains that this is due to the reduction of exports of melons, papayas and Tahiti lemon and apples. Even though there was an increase in export of watermelon, oranges and bananas, this wasn’t enough to reverse the downward trend.
Import fresh fruits
Imports of fresh fruit in August increased by 50% in volume and 42.2% in value compared to August 2015. The numbers for January to August, also show an increase of 34.4% in volume and a slight increase in value of 0.3% in the same period in 2015. Fruits imported in August were purchased at average prices of $978 as against $1028 in August 2015.
It’s explained in the report that this is mainly the result of a huge increase in imports of fresh apples to meet the Brazilian domestic demand, as there was a lack of local harvest in 2016. Other fruits that are traditionally imported, such as pears, peaches and nectarines, experienced a decrease in purchases because of the economic recession that the country is experiencing. That makes it difficult to understand why kiwi imports have increased, as it’s also an expensive product.
Walnuts and chestnuts
The trade balance related to the foreign trade of nuts in August 2016 showed a positive balance, although with lower numbers than in august 2015. The sales decline was less than the drop in purchases.
Export of walnuts and chestnuts
The export of nuts in August declined by 34% in volumes and 7.8% in value compared to August in 2015. The accumulated numbers from January till August 2016, also show a decrease of 28.5% in volumes. However, it shows an increase over the same period in value of 1.8%. According to the report, this reflects the reduction in exports of Para chestnuts in the shell.
Import of walnuts and chestnuts
Import numbers in August 2016 declined by 51.7% in volume and 17% in value compared to August last year. There was also a decrease in the accumulated numbers of 30.7% in volumes and 23% in value against the same period last year. The report explains that this reflects the reduction of cashew nuts imports in the shell as raw material. Moreover, the recession hit the purchases of these higher valued products. Which is to say that consumers hit by the recession buy less.
Source: IBRAF/INBRAF, with data from Sistema Integrado de Comércio Exterior (SISCOMEX)