JEDDAH/RIO DE JANEIRO – Middle East import of corn from Brazil increased markedly in the first eight months of 2012. Saudi Arabia alone has expanded its purchase of the cereal by 151.7 percent to 402,190 tons from 159,770 tons in the same period last year, Scot Consultoria data showed. Earlier, the United Nations Food and Agricultural forecast that Saudi Arabia's cereal imports in 2012-13 will remain high as the Kingdom continues its policy of gradually reducing domestic wheat production. Saudi Arabia plans to expand wheat-storage capacity by 27 percent over the next three years from 2.52 million tons, lifting its reserves to a year of consumption from 10 months now, according to the FAO. The country is phasing out wheat cultivation by 2016 to preserve water. Wheat imports in 2012-13 are forecast to be 2.3 million tons, partly for use in animal feed to substitute for barley and yellow corn, the FAO said. Barley deliveries are expected to be 7.2 million tons and corn purchases are seen at 2.2 million tons, the report showed. The Kingdom harvested an estimated 1 million tons of wheat this year, compared with 1.1 million tons in 2011, according to FAO. Against this backdrop. BrazArtis, an import-export company based in Rio de Janeiro, is set to expand its soybean and corn exports to the Middle East, an endeavor that is aligned with the growing Brazilian grain harvest and exports. Driven by soybean and corn production, Brazilian grain harvest is estimated to exceed 180 million tons from 170 million last year. The soybean harvest alone for 2012/13 is set to increase by 20 percent and reach 81 million tons, from 66 million last year. Ranked as the second agricultural commodity export from Brazil, maize production is set to increase by 7 percent from 66 million tons to 70 million tons. In the period of January to August of this year, Egypt has increased its purchases of maize by 899.4 percent, from 90,310 tons in 2011 to 902,550 tons in 2012, according to Scot Consultoria. Jan Dabrowa, Business Development Director at BrazArtis, said “the value of the Brazilian agribusiness has reached a peak, and it is set to reach $100 billion in 2012. Current exports of oilseeds are being fuelled by changing market dynamics that have set the stage for another successful harvest in 2013. In light of the decreased exports by Argentina and unfavorable weather conditions that affected the US crops, Brazil took up a leadership role as one of the main producer and exporter of soybeans and corn.” The exports of soybeans in 2012 are set to reach 17.5 million tons, a 20 percent boost from 2011. In 2013, a provision for 10 percent increase in planting and 11 percent improvement in average productivity should result in 27.5 million acres planted and potential harvest of 81 million tons of grain. Approximately 48 percent of the total production, equivalent to 39 million tons of oilseed will be destined for export. It is projected by the Brazilian Ministry of Agriculture that the agribusiness exports will reach a record of $100bn in 2012. In 2010 Brazilian agricultural exports surpassed $76.4 billion worldwide, an 18 percent increase from 2009. They attained a new record in 2011 by totaling $94.59 billion, 24 percent higher than in 2010. – SG
