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Brazil faces trade deficit in fresh produce through August 2024

Brazil's trade balance for fresh fruits and vegetables is currently showing a deficit for 2024 up to August, as reported by Hortifruti Brasil, a publication from Cepea at Esalq/USP. The analysis of Comex Stat data by Cepea reveals that despite a robust performance in fruit exports, a surge in imports has led to a trade deficit. This development is noted as uncommon, with previous deficits in the fruit sector recorded only in 1997, 1998, and 2014. The increase in imports is attributed to substantial purchases of fruits not extensively produced in Brazil, including pears, kiwis, and stone fruits, alongside fruits like apples, grapes, and oranges, to offset reduced domestic supplies.

Vegetable trade, as per Comex Stat data under SH07 code, also remains in deficit, with Brazil continuing to be a net importer of these products. However, projections based on the average performance of the last five years for the months of September to December suggest that the fresh fruit trade balance may turn positive by the end of 2024, driven by strong exports of mangoes, melons, watermelons, and Tahiti limes. Despite this, the anticipated surplus is expected to be modest due to rising import costs and high volumes expected to persist.

Source: DatamarNews

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