In April, the collapse was 23% year-on-year, driven by the decrease in the sale of beef and soybeans abroad.
Exports of goods in the month of April totaled 859 million dollars, 23% under of what was registered in the same month last year. The data may be affected by Tourism Week, which this year was in April. That is why it is more relevant to analyze what happened in the cumulative of the first four months of the year. In this calculation, exports accumulated 3.665 million dollarsa 8% drop in dollars compared to the previous year.
Two main factors coincide in explaining this drop in exports. On the one hand, the decline in exports of beef (-30%, $663 million) that last year they had had an unprecedented first semester, with high volumes and record export prices. This year the scenario has changed: prices are lower -although not bad-, and volumes are also lower due to the lower relative demand abroad and the incidence of drought, which has caused a drop in slaughter.
The drought also devastated the production of soy, with the consequent collapse in the exports of this oilseed (-70%, $87 million) a factor that will continue to be seen and with increasing clarity in the coming months.
Pulp offers a promising scenario in terms of exports
Offsetting the drop in these mentioned items, there is a progress in pulp exports (+37%, 680 million dollars) for a better price, although it has shown some decline in the global market in recent weeks; Cellulose is consolidated as the first export item.
Exports of dairy products (+13%, $284 million); Despite the fact that this sector has also been impacted by the drought, producers maintain remittance and activity in the dairy chain.
Grains such as rice, rapeseed and barley malt production they have also had a positive performance compared to last year (26.70 and 36% respectively); he wheat -on the contrary- it shows a drop of more than 40% in the quarter.
Brazil overtakes China as a trading partner
These changes in exports by item are associated with changes in destinations: Brazil consolidates as the main one (+33%; 730 million dollars)leaving behind China which is in second place (-41%; $526 million).
It is a relevant change given that China has been the main destination of Uruguay’s exports and possibly will continue to be so. But in the current situation, the drop in demand for meat compared to last year and the impact of the drought on soybean production make exports of dairy products, some grains and food, and other products (many industrial) more relevant to the Brazil, which is a key destination for Uruguay and to which it is entered without tariffs for being a member of Mercosur.
To Brazil the exports are highly diversified and also include exports of electric power that have increased 50% this year and add up to 120 million dollars in the first quarter.
The third destination in importance is the European Union with purchases for an estimated 350 million dollarswith a modest advance compared to 2022. The fourth destination is USA Where has it been sold to? 230 million dollars 11% more than last year
Source: Ambito
