Agricultural exports to Gulf countries remain positive year-to-date.

Brazilian exports to the Gulf Cooperation Council (GCC), comprised of Saudi Arabia, Bahrain, Qatar, the United Arab Emirates, Kuwait, and Oman, registered their second decline of the year in April due to the conflict in the Middle East. Revenues fell 24.99% in April, to US$455.54 million, compared to April of last year. Year-to-date figures show a 0.67% decrease, totaling US$2.82 billion, according to a survey by the Market Intelligence Unit of the Arab-Brazilian Chamber of Commerce, based on data from the Federal Government. According to the organization, despite the decline, the numbers indicate that demand in the GCC remains significant, even with the increased logistical costs caused by the closure of the Strait of Hormuz, which raised freight and insurance expenses, as well as imposing the need for road and air transshipments over thousands of kilometers. “Exporters have found logistical solutions to get their products into the region, albeit at higher costs. And Arab markets, even in this situation, still generate significant revenue, especially in the agribusiness categories, on which their populations depend for food security,” says Mohamad Mourad, Secretary-General of the Arab-Brazilian Chamber of Commerce. Sales of agricultural products to the GCC are still positive, accumulating a 1.97% increase for the year, or US$1.76 billion, with chicken, sugar, beef, corn, and coffee leading the export agenda. The data show losses in important categories that were, however, offset by advances in other products. Chicken exports have accumulated a 5.98% decrease, to US$791.19 million. Despite this, Qatar, which only has ports in the Gulf, increased its purchases of the product by 13.82%, to US$70.29 million, resorting to Saudi ports on the Red Sea, truck transport, and air freight to maintain trade flow. Sugar sales grew 28.74% between January and April, to US$442.59 million, with the main advances recorded in Saudi Arabia, where the increase was 46.35%, and in Oman, with shipments of Brazilian sugar jumping 6,332.27% in the period, even with some of the country's ports affected by the blockade of the Strait of Hormuz. Beef continues to perform positively in the four-month period, advancing 28.77% to US$219.30 million, and growth in all GCC markets. In April, however, the numbers show a slowdown in shipments, with revenues falling 46.90% compared to March, a clear sign of a trend reversal. Corn, in April, registered a recovery. After virtually nonexistent shipments in March, sales of the grain totaled US$ 11.80 million last month, accumulating a 11.69% increase for the year, totaling US$ 73.01 million, with sales driven mainly by deals with Kuwait and the United Arab Emirates. Coffee accumulated a 58.50% increase in the first four months of the year, with sales of US$ 64.67 million. The largest increases were seen in the United Arab Emirates, Saudi Arabia, and Oman, amidst a movement that appears to have been one of restocking.

This text was translated by machine from Brazilian Portuguese.