Brazilian Agribusiness Sees 31.9% Increase in Foreign Trade with China, Doubling Performance from Five Years Ago

US$ 50.8 billion. This was the value of Chinese imports, just in Brazil’s agribusiness. If the value is converted at the current exchange rate, it means that the Asian country left over R$ 306 billion in the Brazilian trade balance, 43.3% more than what was traded in 2021, and looking back to 2018, the numbers represent double the performance.

The percentage of 31.9% refers to the total values shipped in paper. Information from the Ministry of Agriculture and Livestock (MAPA) shows that Brazil exported US$ 159 billion in five sectors of agricultural products.

One of the ports that unloads imported products from Brazil is the Port of Lianyungang, located in Jiangsu province. Among the sectors that earn the most, meaning over US$ 1 billion, are the sugar and alcohol complex, fibers, the textile products sector, the forest products sector, the meat sector, and soy. The values, around US$ 48.915 billion, represent 83.2% of everything that was shipped.

Regarding soy, analysts see that the rise is the result of the significant effort that the Chinese have made in the movement of the animal feed industry, especially feed for the swine industry. And for that, stocking is essential in this regard.

China has also developed cultivation policies on arable land. Following soy, the meats, US$ 10.4 billion for the acquisition of 2.2 million tons of protein.

Turnaround in Global Configurations

This is the movement that China has been making for the last 20 years. And the country announces that it intends to continue on the same path. This is because, with 1.4 billion inhabitants, 200 million of whom are living in poverty, whom the dictatorial government wants to lift out, there is no other way. 

However, the growth of the middle class has worried the Asian country, which currently has about 300 million people. And this audience has more ambitions, seeking to consume more elaborate products. Even with forecasts that, by 2050, the Chinese population will decrease to 1.35 billion, as pointed out by reference institutions such as the World Bank, there is no forecast that demands will decrease; on the contrary, they will increase.

Other Brazilian agribusiness products also have a considerable and growing demand. These include tea, oils, cocoa, coffee, juices, cereals, and animal feed, with a highlight on juice (orange, US$ 95.1 million) and coffee (US$ 86.2 million).

The sector is excited for the year 2023, as there are signs that Brazil will benefit from market movements. There are opportunities for exporting countries in general, even with the discouragement presented by the World Bank during the World Economic Forum in the week of January 16 to 20 of the past year.

There is a forecast of reduced growth; however, the Chinese and other countries have already announced that they do not intend to stop exporting. Additionally, from the transition from 2022 to 2023, China also started importing Brazilian corn. In 2022, 1.165 million tons were shipped, and there is an expectation that this year, the world’s largest corn buyer will acquire 18 million tons.