Even with more expensive freight, higher insurance, and logistical blockades linked to the war in the Middle East, Brazilian agribusiness exports to the Gulf grow 1.97% in the year, driven by sugar, beef, corn, and coffee.
Brazilian agribusiness exports to the Gulf Cooperation Council remain positive despite the impacts of the war in the Middle East, with a 1.97% increase in the year and revenue of US$ 1.76 billion, according to the Arab-Brazilian Chamber of Commerce.
The bloc includes Saudi Arabia, Bahrain, Qatar, United Arab Emirates, Kuwait, and Oman. Chicken, sugar, beef, corn, and coffee lead the agenda, in a scenario marked by higher logistical costs after the closure of the Strait of Hormuz in the Arab region.
Agribusiness withstands the war in the Middle East
Chicken, the main exported item, fell 5.98% in the year-to-date, to US$ 791.19 million. Even so, Qatar increased purchases by 13.82%, totaling US$ 70.29 million, using Saudi ports, road, and air transport.
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Sugar advanced 28.74% between January and April, reaching US$ 442.59 million. Saudi Arabia saw an increase of 46.35%, while Oman recorded a jump of 6,332.27%, despite some ports being affected by the blockade.
Beef grew 28.77% in the four-month period, with US$ 219.30 million and expansion in all GCC markets. In April, however, revenues fell 46.90% compared to March, indicating a possible change in trend.
Corn, coffee, and total exports
Corn recovered in April, after almost non-existent shipments in March, totaling US$ 11.80 million in the month. For the year, it grew 11.69%, to US$ 73.01 million, driven by Kuwait and the United Arab Emirates.
Coffee accumulates a rise of 58.50%, with US$ 64.67 million, in a movement linked to stock replenishment in the United Arab Emirates, Saudi Arabia, and Oman, according to the disclosed data.
In Brazil’s total exports to the GCC, revenues fell 24.99% in April, to US$ 455.54 million. For the year, they decreased 0.67%, to US$ 2.82 billion, while the war in the Middle East raised freight, insurance, and logistical transshipments over long distances.
