How the war between Russia and Ukraine affects peanut production in Brazil

Published 2022년 3월 8일

Tridge summary

The ongoing war between Russia and Ukraine is causing concern for Brazilian peanut producers and exporters, who rely heavily on these countries, accounting for 48% of Brazilian grain exports. The conflict has led to suspended shipments, potentially causing significant damage to the industry. In 2021, Russia purchased US$130 million worth of peanuts from Brazil, and Ukraine bought US$29.2 million, marking increases in previous years. As the war impacts logistics and export destinations, Brazilian exporters are modifying contracts and seeking alternative markets like the UK, Europe, and Africa. Despite the challenges, there is optimism for direct imports of peanuts to China, with the Ministry of Agriculture actively advocating for this opportunity. Brazil, as the world's fifth-largest peanut producer, mainly based in São Paulo, is facing uncertain times regarding the quality and storage costs of its crop amidst the escalating crisis.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

In the middle of the harvest of the Brazilian peanut crop, producers and exporters are more concerned as the war between Russia and Ukraine advances, which, this Tuesday, reached its 13th day. The two countries account for 48% of Brazilian grain exports. And since the beginning of the armed conflict and the imposition of sanctions on Russia by the West, shipments to the two countries have been suspended. “There will be damage, there is no doubt. What we are doing now is assessing the size of the problem in order to be able to scale it and know what can be done”, explains Luiz Antônio dos Santos Vizeu, president of the Peanut Sectorial Chamber of the State of São Paulo, the largest producer and exporter of the product. ALSO READ: Why Brazil doesn't produce enough fertilizer and imports it from Russia? Russia and Ukraine account for 48% of Brazilian peanut exports (Photo: Abicab/Disclosure) According to the Ministry of Economy's ComexStat system, the sector exported US$ 331 million ...

Source: Agroinforme