Foreign sales in 2022 rose 485% compared to 2019, the last year before the pandemic; India and Bangladesh increased purchases
The sale of soybean oil to other countries grew 485% in 2022 compared to 2019, the last year before the pandemic. It was the highest increase among industrialized products based on agribusiness.
India and Bangladesh lead the purchase of Brazilian soybean oil. China has reduced the purchase of the product since 2019.
Countries in South and Southeast Asia had a greater increase in the purchase of Brazilian products from 2019 to 2022 than China.
India reduced the soy oil import tariff from 24.5% to 5.5% in 2022, which favored the rise of Brazilian sales.
A Abiove (Brazilian Association of Vegetable Oil Industries), which represents the Brazilian industry in the sector, said there was an expectation of a return to the previous level, which could reverse the high sales for the country.
POTENTIAL INCREASE
Even with the increase in the flow of soybean oil to India, Brazil’s share is only 5% of imports of the product. “Participation can easily go to 15%”, said the Indian ambassador in Brasilia, Suresh Reddy.
Argentina’s share of the Indian market is more than three times that of Brazil. According to Abiove, Argentina built a large soybean crushing park with a tax advantage for export.
Analysis
The rise in soy oil sales shows that Brazil may have great business opportunities abroad, with the potential to accelerate GDP growth.
The dream of Brazilians is to produce and export high technology products. But it’s hard to beat the competition in the area. A much easier path is to add value in the agribusiness production chain.
Soybean oil and different types of meat are examples of this. Increased production will mean more jobs, more taxes and a larger trade surplus for the country.
Negotiation and commercial promotion efforts must be dedicated to all areas. But it’s also important to focus on what can bring you the biggest gains quickly.
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