Brazil may increase agribusiness exports with the Bi-Oceanic Corridor

RIO DE JANEIRO, BRAZIL – Brazilian exports of products such as pulp, soy, animal protein, among others, should reach new levels as the country moves forward with the Bi-Oceanic Road Corridor.

The physical integration project, which will connect Porto Murtinho, in Mato Grosso do Sul, with Chile’s northern ports, was also analyzed from the perspective of its market potential: Asia and South America.

Planned in 2015, the route is the only infrastructure project involving more than 2 countries underway in South America. With completion scheduled for 2023, the infrastructure work should facilitate trade expansion with the West.

The analysis of the subject is detailed in the book “Corredor Bioceânico de Mato Grosso do Sul ao Pacífico: produção e comércio na rota de integração sul-americana” (Bi-Oceanic Corridor from Mato Grosso do Sul to the Pacific: production and trade on the South American integration route), which was launched this week, in a co-edition between the Institute for Applied Economic Research (IPEA) and the State University of Mato Grosso do Sul (UEMS).

“The challenge each of our states faces in its international insertion is part of IPEA’s agenda, and this project marks this perspective very clearly,” said Ivan Oliveira, IPEA’s director of Studies and Economic Relations and International Policies.

The director explains that the study focused on recognizing specific features of the state of Mato Grosso do Sul and that similar initiatives should be developed by the institute.

Economic potential

In the specific case of pulp, the corridor could further expand the already established market, according to the published study.

Brazil currently accounts for another 46% of global eucalyptus pulp exports, and Mato Grosso do Sul accounts for 25.9% of this total. In 2019, pulp accounted for nearly 40% of the state’s total exports.

The estimate by the Planning and Logistics Company (EPL) is that savings enabled by the Bi-Oceanic Corridor, by replacing trade from Mato Grosso do Sul through Brazilian Atlantic ports and the Panama Canal with northern Chilean ports, could reach US$70 million annually in the case of pulp sales to the Asia-Pacific region.

The largest supplier of beef in the world and with about one third of the national herd concentrated in the Midwest region, Brazil is also the fourth largest global producer of chicken and the main world exporter of cuts and edible offal, with a turnover of approximately US$4.3 billion in the latter market.

In the global scenario, in 2019 China alone imported more than US$930 million of chicken meat from the world and the Brazilian market supplied 80% of this amount, essentially with portions of tulips and chicken feet, highlighted in the study.

Considering the market, Mato Grosso do Sul also exported US$210.7 million in 2019, which was mainly bound to Asia and the Middle East.

With information from IPEA