[Economics] Agricultural trade balance fell 20% in the first four months of the year

[#Steeven.™]

Ecuador exported less cocoa and flowers and in general reduced its shipments by 4% and imported 22% more, mostly soybean cake and wheat.

Between March and April 2021, the agricultural trade balance (agricultural, livestock and forestry) experienced a fall of 17%, reaching $ 241.6 million in the last month, according to figures published by the Ministry of Agriculture and Livestock (MAG).

This behavior, according to the State portfolio, was due to the 7% decrease in exports, mainly cocoa and flowers, reducing sales to the United States; although it was clarified that the decline in both items is seasonal in nature.

On the other hand, imports rose by 2%, mainly due to the increase in purchases of soybean cake and wheat, coming from Argentina to a greater extent.

Meanwhile, at the end of the first four months of the year, agricultural exports experienced a 4% contraction; the country stopped receiving $ 110.3 million. Meanwhile, in the same period, the import of goods of agricultural and agro-industrial origin registered a rise of 22%, reaching $ 1,165 million. Soybean oil is one of the items that contributed to this increase, whose figures went from $ 31.3 million to $ 42.7 million, that is, 36% more.

In this way, the trade balance reached $ 1,289 million, which meant a decrease that was around 20% compared to the same period in 2020; that is, $ 321 million less.

Regarding the most exported products, in first place is the Orito, with $ 14.8 million in sales abroad for the month of April, 23% higher than that sent in the previous month, in a greater amount to the United States.

In second position, monthly exports of wood pulp and paper or cardboard rose, for an amount of $ 1.61 million more, particularly destined for Colombia; to this destination, Ecuador sold corrugated paper, test liner paper, among other items.

Subsequently, the export of cocoa butter - input for the manufacture of chocolate and in the cosmetic and food industries - rose, from $ 0.70 million (138 tons) in March to $ 1.84 million (361 tons) in April of this year. Its main commercial ally was Germany, receiving 220 tons of the derivative for a total value of $ 1.14 million; being supplied by Nestlé Ecuador, Cofina S.A. and Aromasabor Cia. Ltda.

In imports, for April 2021, the industry bought $ 138.4 million between soybean cake and wheat, giving a growth of 19% compared to what was acquired in the previous month. Of the oilseed, 136,733 tons were brought, having as suppliers Argentina (72%), Bolivia (17%), the United States (8%) and other countries (3%); Meanwhile, 223,214 tons of cereal were purchased, from Canada (47%), the United States (39%) and Argentina (14%). In April, 17,151 tons of oats and flakes were purchased, for a value of $ 5.79 million; mostly from Canada.

Meanwhile, the volume of foreign exchange of Ecuador against other territories, in the agricultural field also registered a reduction of $ 37 million between March and April, standing at $ 924 million in the last month.

Of this value, $ 757 million (82%) were traded with 19 countries: $ 251 million corresponded to the NAFTA block; $ 239 million with the South Americans: Argentina, Colombia, Chile, Peru, Bolivia and Brazil; $ 115 million with Europeans: Netherlands, Germany, Italy, Belgium and Spain; the remaining $ 152 million with Russia, China, Turkey, Japan and Algeria.