The price of the main products exported by Brazil plummeted after the outbreak of coronavirus in China, the main buyer of Brazilian products, according to BMJ Consultores Associados. Since the second half of January, the price of soybeans fell 5.13%, that of oil 15.5% and iron ore 14.3%. These three products accounted for 78% of Brazil’s foreign sales in 2019, which totalled $177.3 billion.
Chinese beef importers are seeking to renegotiate prices previously agreed when they closed deals to buy dozens of shipments from Brazil. Some of them are refusing to pay for shipments that already arrived in China. Brazilian beef exports to China increased more than 50% last year helping beef prices in Brazil to reach an all-time high. Some Brazilian beef exporters are now trying to divert cargoes that have not yet reached China to other potential destinations, such as Iran.
Exports from Pernambuco fell by 30.3% in 2019 compared to 2018. Last year, the Brazilian state sold $1.3 billion, compared with $2 billion in 2018. The drop was steep compared to the 6,4% in national exports. The main reason would be the dependence of the local market on Argentina, the main international customer for Pernambuco products. In 2018, Argentina accounted for 33% of Pernambuco exports, followed by the USA (16%) and the Netherlands (10%).
Brazil shipped 1.847 million tonnes of beef, up 12.4% from 2018, and revenue was up 15.5% to $7.59 billion, according to the Brazilian Beef Exporters Association (Abiec). Throughout 2019, China boosted exports and took the lead in purchases with 26.7% of total volume and $2.6 billion revenue. United Arab Emirates imported 71,397 tonnes of beef from Brazil in 2019, a figure 93% higher than 2018.