Flavio Maluf is more than just the CEO of one of the largest exporters of building materials in Brazil, he is also the son of a well-known and beloved Brazilian politician. That makes him more than qualified to comment on the recent report released by the International Relations of the Ministry of Agriculture, Livestock and Supply on the state of exports for Brazilian agribusiness. According to the report, there was a 0.7% decrease in exports in comparison to the same period the previous year.
While some may be alarmed at this figure, Maluf painted a very different picture. As the CEO of Eucatex, a leading fabricator of building materials in Brazil, Maluf knows a little bit about exports. In truth, soybeans account for more than half of Brazil’s total agribusiness exports (53.3%). According to the latest survey of the 2017/2018 soybean harvest carried out by the Brazilian Supply Company (Conab), soybean production is actually expected to reach 119 million tons by the end of 2018, which is up 4.2% from the previous crop. Find out more at dino.com
As of June of 2018, Brazil has already shipped 46.27 tons of the grain and generated revenues in excess of $18.4 billion. That alone was an increase of 5.2% in quantity and 10.6% in export value. Cumulatively, that led to an average price increase of 5.1%. In addition, the two largest buyers of Brazilian agribusiness exports are China and the European Union. The EU, currently comprised of 28 countries – also saw a significant increase in soybean sales of US $94.70 million.
While some may view a 0.7% decrease in exports overall as a sign of sluggishness, Eucatex’s CEO seems to see a very different picture. In addition to individual figures, numbers and statistics actually showing exports being on the rise, Maluf also pointed out that the movements reflected in the report were merely a balance of trade in the agribusiness sector which totaled US $8.17 billion (+ 0.7%).