Date: March 21, 2011
According to the Brazlian ministry of agriculture, Mapa, Brazil ag value exports surged 19.8% to USD 78 billion against the same period of last year. The meat sector led the surge.
The surge is very significant in view of a strengthening currency (esp against the USD) and some serious logistical shortcomings. It shows that a gradual loss in competitiveness is now being offset by a strong demand for commodities and the ability of Brazilian exporters to pass price increases to their customers. It also suggests that agfood exporters are entering a new era of strength, similar to what the oil suppliers have been enjoying for decades. I would anticipate the trend to continue, with the Brazilian export industry able to duck the BRL/USD rising barrier by raising prices.
Finally the sheer size of the rise should come as shocking news as far as food price inflation is concerned. Indeed a near 20% rise is very significant.
Source: investimentos e noticias
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