Brazil export to EU records highest quarterly value in more than 25 years
Thanks to the strong demand and high prices of food and energy raw materials
In the first quarter of 2022, exports to Italy increased by 27.1%, for a total of 1.1 billion dollars
Exports of Brazilian goods to the EU reached a total of € 9.05 billion in the first quarter of 2022, an increase of more than 45% from 2021 levels, marking the highest quarterly value of Brazilian exports in over 25 years. Brazilian exports to Italy reached 930.2 million euros in the first quarter of 2022, with an increase of 27.1% compared to the same period of 2021, maintaining the positive export trend recorded in 2021. Imports from Italy amounted to 1.1 billion euros, 4.1% less than in the same period of 2021. As a result, the total trade flow between Brazil and Italy increased by 7.7%, reaching 1.94 billion EUR. From January to March 2022 , Brazil recorded a trade deficit of 202.19 million euros with Italy.
The combination of high prices, exacerbated by the war in Ukraine, and strong export demand to Europe for major Brazilian commodities, including oil, iron ore and soybeans, contributed to the solid export picture. In Italy, the increase in exports was particularly evident in seeds and oleaginous fruits, with overall values up by 19.53 million euros, equal to + 45.8% compared to the data of the 1st quarter of 2021, and in gold non-monetary (excluding gold ores and concentrations) and in scrap metal ores, with overall values increasing by € 40.38 million.
The data was published yesterday in the Europe Trade Monitor Q1 2022 report from ApexBrasil, the Brazilian Trade and Investment Promotion Agency. Sustained prices and strong demand in two economic sectors, namely agriculture and the mining industry, have pushed prices higher.
The increase in exports was determined by the growth in shipments of coffee, tea, cocoa and spices, which increased by 81.18 million euros, equal to + 80.5%. Other products that showed a positive dynamism were non-monetary gold (excluding gold ores and concentrations), which recorded an increase of 20.8 million euros, equal to + 98.2%, scrap metal minerals (+ € 20.6 million, equal to + 28.9%) and wood pulp and waste paper (+ € 18.7 million, equal to + 15.1%).
Brazilian footwear exports to Italy grew by 1.43 million euros in the first three months of 2022, with a growth of 30.9% which makes Italy the third largest importer of Brazilian footwear in Europe, after France and Germany. Another fast-growing segment is that of cachaça (a brandy obtained from the distillation of sugar cane juice in its raw state), whose exports reached 330,000 euros from January to March, with an increase of 230.1 % compared to the first quarter of 2021, which positions Italy as the largest importer of Brazilian distillate in Europe.
For Italy, several potential factors have contributed to the positive picture of exports: among them, the growth of Brazil as a reliable supply partner compared to the instability of other regions, in particular Ukraine, which have shifted exports towards this country area, and also the growing use of sustainable paper as packaging material in the country, according to the Italian Federation of Graphic Paper.
Commenting on the data, Igor Celeste, Head of Market Intelligence at ApexBrasil, said: "Brazilian exports performed strongly with our European trading partners in this first quarter of 2022, continuing the positive export trend we have seen last year. As global events cause uncertainty, importers can rely on Brazilian products to ensure that demand is met, in both the agricultural and industrial sectors. It is a phenomenon that we have been seeing since 2021. As we move towards 2022 , we will continue to support increased trade and investment to mitigate potential disruptions and ensure long-term economic recovery".
As regards imports from Italy to Brazil, there was a significant increase in iron and steel (+10.06 million euros, equal to 35.3%), fertilizers (+9.72 million euros, equal to 159.9%), footwear (+4.48 million euros, equal to 92.8%) and plastics in primary forms (+4.05 million euros, equal to 14.2%).
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