Brazil’s commodity sales to Arab countries soar as importers stock up on food

SAO PAULO, May 3 (Reuters) – Brazilian exports to the 22 countries of the League of Arab Nations rose in the first quarter amid soaring prices for agricultural raw materials 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 during the period, an increase of almost 34% compared to the same period a year ago, according to the statement from the Chamber of Commerce. Arab-Brazilian.

An increase in sales to Arab countries also reflects the reduced participation of Russia and Ukraine in the world trade in cereals and fertilizers, the statement noted, referring to two main suppliers of products such as wheat and sunflower oil. .

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Iron ore, which accounts for the bulk of Brazil’s sales to Arab countries, came in at $690.29 million in the first quarter, down 12.5 percent year-on-year. On the other hand, the strong demand for food products worked in favor of national exporters, who realized a windfall.

Chicken meat sales rose nearly 11% to $591 million, while sugar sales jumped nearly 20% to $588.8 million in the first three months of the year.

Sales of soybean products soared 122.8% to $318 million, while wheat exports amounted to $285.86 million, marking a jump of 438.06%.

Brazil also increased its sales of corn and frozen beef by 27.21% and 165.73%, respectively, to Arab countries, the data showed.

The Brazil-Arab Chamber said countries outside the Arab world are keen to guarantee food supplies, a boon for 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 harvest. .

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Reporting by Ana Mano Editing by Marguerita Choy

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