After closing a record semester with sales of almost US$ 7,000 millions, exports of goods —including free zones— grew 23% in July in the year-on-year comparison and totaled US$ 1,304 million, according to what the Uruguay XXI Institute reported on Monday. The increase is largely explained by higher sales of soybeans (+152%), cellulose, rice and vehicles, while bovine meat presented its first drop for the first time in the year.
In the first seven months of 2022, exports totaled US$ 8,186 millionyes, which implies an increase of 36% in the year-on-year comparison over a record year for Uruguay’s foreign trade in goods. Soybeans and bovine meat are the products that explain most of this growth, followed by cellulose and vehicles. Meanwhile, dairy products, other grains, meat by-products and plastics are other products with relevant increases. According to Uruguay XXI, the year-on-year expansion in foreign sales of the country’s goods was the lowest so far this year.
Uruguay XXI
soybean push
Soybeans were the most exported product in July, in a context of good sales prices and a better harvest than last year. Specifically, requests for oilseed exports stood at US$ 353 million, 152% above the record for the same month of 2021. The rise is due to an improvement in prices —despite the fact that the international reference began to drop in July— and a strong rise in export volumes. In this way, soybean exports reached US$ 1,542 million in the accumulated from January to July, highlighted Uruguay XXI in its report, with 2.5 million tons. Compared to the same period in 2021, they grew 124% in value and 78% in volume.
Uruguay XXI
Rice also had a positive impact on the month’s variation. In July, rice export requests stood at US$76 million, a record 90% higher than that of July 2021.
For their part, the vehicle exports continued to grow and in July reached US$ 40 million (186% above the level of the same month of 2021). Thus, in the accumulated January to July totaled US$ 240 millionmultiplying by three compared to the same period in 2021, mainly explained by the re-entry from Ford to Uruguay at its Nordex plant. Sales to Brazil represented 76% and those to Argentina 23%.
Finally, the foreign sales of bovine meat had a negative impact on the monthly variationl, marking a brake against the increases of previous months. Specifically, the Loans fell 23% compared to the July 2021 record, reaching US$ 177 million. Similarly, bovine meat was the third export product in July.
The decrease in sales is due to lower volumes exported, in a context of sharp decline in slaughter. At the destination level, lower sales to China —which is the most important destination— explained most of the drop. However, after increases in previous months bovine meat exports accumulated a year-on-year increase of 36% in the first seven months of the year and totaled US$ 959 million.
Uruguay XXI
By destinations
Exports to China – the first export destination – fell 18% in July in the year-on-year comparison and totaled US$ 205 million. Thus, the increase observed in previous months was halted, basically due to lower sales of beef.
Meanwhile, exports to Brazil —second export destination— grew 50% year-on-year and totaled US$ 158 million. At the product level, increased sales of vehicles, wheat, rice and dairy products, among others.
For your partArgentina was the fourth export destination in July. Sales to the neighboring country totaled US$71 million, double the record for July 2021. This was due to higher sales of soybeans, which accounted for 26% of what was sold to the neighboring shore last month. The Argentine market was opened for Uruguayan soybeans due to the lack of Paraguayan production, which is normally supplied by its crushing plants.
Uruguay XXI
