In today’s edition of On The Media, we bring you a report from the British outlet Financial Times, which highlights the growth potential of Brazilian agribusiness on the international stage. The article analyzes the impacts of the tariff war between the United States and China and shows how Brazil can benefit from the dispute, both in export volumes and in the appreciation of its products, in a scenario that increases the importance of the national production of inputs such as potassium.
With the new trade sanctions imposed by Donald Trump, China has redirected its demand for agricultural products, previously supplied by the U.S., to South American suppliers, especially Brazil.
The market movement is already reflecting on the trade balance, and while U.S. soybean exports are losing ground, Brazilian exports are soaring. In January, U.S. agricultural exports to China dropped 54% compared to the previous year. In contrast, Brazilian producers are experiencing a surge in demand and prices, strengthening the country’s role as a key supplier to Asia.
According to the article, Europe may also increase its purchases from Brazil amid the application of retaliatory tariffs on U.S. agricultural products. For Brazil, this is a moment of opportunity, but also of responsibility in strengthening its agricultural production chain.
Read the full article through the link below:
https://www.ft.com/content/3b101afd-b51c-4d64-ba2f-45ad4590e819?sharetype=blocked