India has overtaken Brazil in food exports the League of Arab States for the first time in 15 years. In 2020, the COVID-19 pandemic disrupted trade flows, according to a study by today's Arab-Brazilian Chamber of Commerce.
The Arab world is among Brazil's major trading partners, but its removal from these markets took its toll after the pandemic rocked global logistics.
Brazil accounted for 8.15% of the total agribusiness products imported by the 22 (Arab) League members last year, while India captured 8.25% of this trade, ending Brazil's 15-year top position.
Although Brazil remained competitive "from the court", Brazil lost ground to India and other exporters such as Turkey, the United States, France and Argentina because traditional shipping routes were disrupted.
Brazilian shipments to Saudi Arabia that used to take 30 days could now take up to 60 days, according to the chamber, while India's geographic advantages allow it to ship fruits, vegetables, sugar, grains and meat in just a week.
Brazil's agricultural exports to the Arab League rose in value last year by only 1.4% to $ 8.17 billion. Between January and October of this year, sales were $ 6.78 billion, up 5.5% as logistics problems subsided, data from the Chamber of Commerce showed.
China's urge to replenish its own food supplies during the pandemic has also diverted some of Brazil's trade with the Arabs, leading countries like Saudi Arabia to step up domestic food production while looking for 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.
Source
Hansa Terminhandel GmbH