According to data provided by the Arab-Brazil Chamber of Commerce, for the first time in 15 years, India exceeded Brazil in food exports to the League of Arab States as the COVID-19 pandemic disrupted trade flows in 2020.
The Arab world is among Brazil’s most important trade partners, but its distance from those markets took its toll as the pandemic rattled global logistics. The data showed Brazil accounted for 8.15% of the total agribusiness products imported by the 22 League members last year, whereas India captured 8.25% of that trade, ending Brazil’s 15-year advantage.
Despite remaining competitive “from the farm gate in,” Brazil lost ground to India and other exporters such as Turkey, the United States, France, and Argentina amid a disruption of traditional shipping routes.
According to the Chamber, Brazilian shipments to Saudi Arabia that once took 30 days could now take up to 60 days, whereas India’s geographic advantages allow it to ship fruits, vegetables, sugar, grains, and meat in as little as a week. Brazil’s agricultural exports to the Arab League rose just 1.4% by value to $8.17 billion last year.
Between January and October this year, sales totaled $6.78 billion, up 5.5%, as logistics problems subsided, Chamber data showed. China’s push to boost its own food inventories during the pandemic also diverted some of Brazil’s trade with the Arabs, leading countries such as Saudi Arabia to step up promotion of domestic food production while seeking alternative suppliers. It’s a turning point. The Saudis are still big buyers, but they are also net re-exporters of food, “the chamber said in a statement.