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According to figures given to Reuters on Tuesday by the Arab-Brazil Chamber of Commerce, India had overtaken Brazil in food exports to the League of Arab States for the first time in 15 years in 2020, as the Covid-19 pandemic interrupted trade flows.
Although the Arab world is one of Brazil’s most important trading partners, the country’s distance from those markets took a toll as the pandemic wreaked havoc on global logistics.
Food security is a national priority in the UAE, which is almost entirely dependent on imports. The Covid-19 pandemic has heightened domestic concerns in recent months, as global supply chains for imports have been disrupted. The crisis has also reignited debate over how to best boost local agriculture and encourage farming innovation.
According to the data, Brazil imported 8.15 percent of the total agribusiness products imported by the 22 League members last year, while India imported 8.25 percent, ending Brazil’s 15-year lead.
Despite staying competitive “from the farm gate in,” Brazil has lost ground to India and other export markets like Turkey, the United States, France, and Argentina as conventional shipping routes have been disrupted.
According to the Chamber, Brazilian shipments to Saudi Arabia could now take up to 60 days, whereas India’s geographic upsides allow it to ship fruits, vegetables, sugar, grains, and meat in as little as a week.
Last year, Brazil’s agricultural exports to the Arab League increased by only 1.4 percent in value to $8.17 billion. According to Chamber data, sales increased by 5.5 percent from January to October this year, to $6.78 billion, as logistics issues faded.
During the pandemic, China’s push to raise its own food inventories diverted some of Brazil’s trade with the Arabs, prompting countries like Saudi Arabia to promote 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.
