Iran traded 12,593 tons of non-oil goods worth $32.54 million with Latin American countries in the first two months of the current fiscal year (March 21-May 21), latest data released by the Islamic Republic of Iran Customs Administration show.
Iran exported goods to only eight Latin American countries and imported from only three of 33 Latin American countries during the period.
Trade with Brazil stood at 11,967 tons worth $30.61 million, for the Latin American country to top the list of Iran’s partners in the region. It was followed by Venezuela with 113 tons worth $1.34 million and Mexico with 112 tons worth $220,636.
Iran’s exports totaled 645 tons worth $2.22 million during the period under review.
Venezuela topped the list of export destinations among Latin American nations with 114 tons worth $1.34 million. It was followed by Brazil with 132 tons worth $566,293 and Colombia with 187 tons worth $190,765.
Imports, which stood at 11.95 million tons worth $30.32 million during the period under review, mainly came from Brazil with 11.83 million tons worth $30.04 million, Mexico with 112 tons worth $220,172 and goods worth $55,999 from Argentina.
Iran traded 1.73 million tons of non-oil goods worth $1.25 billion with Latin American countries in the fiscal 2021-22.
Trade with Brazil stood at 1.36 million tons worth $737.77 million.
Latin America is a group of 20 countries and 13 dependencies in the Western Hemisphere where Spanish, French and Portuguese languages are predominantly spoken. The region covers an area stretching from the northern border of Mexico to the southern tip of South America, including the Caribbean.
Iran to Replace Ukraine With Brazil to Supply Animal Feed
Brazil will replace Ukraine as a supplier of raw materials for animal feed production and measures have been taken to start importing from the South America country from the coming months, the CEO of Iran Animal Farmers National Union said recently.
“The conflict between Ukraine and Russia, as well as the worldwide drought, has made the supply of livestock and poultry feed a challenge for almost all countries, including ours, which has prompted officials to take measures to prevent a shortage of animal feed in the domestic market,” Mojtaba Aali was also quoted as saying by ILNA.
The official noted that the government began talks with the Brazilian side more than six months ago to prepare the grounds for barter trade for expansion of bilateral commercial interactions.
A total of 15.5 million tons worth $6.47 billion of raw materials for the production of animal feed were imported during the 11 months to Feb. 19, registering an 11% and 51% rise in weight and value respectively compared with the corresponding period of the preceding year, data released by the Livestock and Poultry Feed Importers Union show.
Over 856 million tons of field corn worth $2.95 billion were imported during the period, registering a 7% decline in volume and a 28% increase in value year-on-year.
A total of 2.11 million tons of soybeans worth $1.38 billion and 2.27 million tons of soymeal worth $1.24 billion were imported, indicating a 59% and 17% growth in value and weight respectively compared with the corresponding period of last year
Barley imports stood at three million tons worth $895.96 million, registering a 76% and 112% rise in weight and value respectively YOY.
According to CEO of Livestock, Poultry and Fish Feed Factories Association Majid Jafari, Iranian producers of animal feed have the capacity to produce 22-25 million tons per year, yet they are working at around 30% of their full capacity.
Domestic annual demand stands at 12-15 million tons, he added.
Brazilian Minister of Agriculture’s Iran Visit
Brazil’s Minister of Agriculture, Livestock and Supply Tereza Cristina travelled to Iran in February for a four-day visit.
Cristina was in Tehran to sign agreements with Iran’s National Petrochemical Company, NPC, and work on prospects of tripling Iran’s urea shipments to Brazil, MercoPress reported.
NPC President Morteza Shah-Mirzaei said urea exports to Brazil could in the short term reach 2 million tons a year, while the volume currently shipped is 600,000 tons annually.
Cristina confirmed Brazil's interest in more Iranian urea and highlighted the quality of the Iranian fertilizer that is mostly used as a fertilizer to supply nitrogen to crops.
“This arrangement guarantees that Brazil is in a position to receive enough imports from Iran to step up our agro-industry. Through this partnership, we will ensure the strategic purchase of these inputs to secure efficient, continuous food production,” she said.
The NPC president highlighted that the company has other petrochemical products ready to supply to the market. NPC is a subsidiary of the Iranian Ministry of Petroleum, responsible for developing and controlling the Iranian petrochemical sector. It is currently the second-largest producer and exporter of petrochemical products in the Middle East.
The Brazilian minister visited Shiraz Petrochemical Company, one of the country’s main urea manufacturers. Iran’s annual urea production is estimated to be over 5 million tons, most of which is for the domestic market and the remainder is exported.
During a reception at the Brazil-Iran Business Forum in Tehran, the minister stated that with the import of soy-derived products, corn and meat, Iran has become the largest client of Brazilian agricultural products in the Middle East.
However, Brazil is interested in expanding its exporting portfolio to include cotton, rice and sugar, she added.
Brazil is prepared to increase purchases of Iranian walnuts, chestnuts, and dried fruits, and acquire other products such as saffron, pistachio and wheat.
“I am confident that we will pursue the right path to overcome any eventual adversity and intensify bilateral trade for our mutual benefit,” she said.
Cristina underlined that barter trade is an excellent option for shipping grains and other commodities to Iran and, in the same vessels, return with urea and other petrochemicals to Brazil.
“There are Brazilian trading companies that are experienced in such operations, and thus work with more attractive prices,” she added.
The Brazilian minister also highlighted Iran’s interest in soil and water management technologies plus irrigation systems. In this context, Brazil has a long experience, and cooperation between Embrapa and Iran's Agricultural Research, Education and Extension Organization can boost cooperation on these issues.
Call for More Balanced Trade
According to Hamed Amini, the vice chairman of Arak Chamber of Commerce, Iran annually imports more than $5 billion worth of essential goods from Brazil at a customs duty rate of up to 4% while the Islamic Republic’s exports to the South American country is less than $100 million per year. Brazil imposes over 100% in duties on Iranian exports.
He called on parliamentarians to pass a bill for the formation of a preferential trade agreement between the two countries with the aim of cutting Brazil’s import tariffs on Iranian goods for a more balanced bilateral trade regime.
“Iran can boost its export of petrochemical products, gasoline, pistachio, raisins and dates to Brazil,” he added.
The official noted that Iran imports 50-60% of its essential goods from Brazil.
Iran-Brazil Chamber of Commerce was inaugurated in the presence of Iranian and Brazilian officials and parliament members, Mehr News Agency reported on Nov. 20, 2021.
Addressing the gathering, Iran's ambassador to Brazil, Hossein Gharibi, expressed satisfaction with the inauguration of such an institution for Iranian and Brazilian private sectors.
He called for the expansion and diversification of relations between the two sides.
“Brazil is an influential member of Mercosur,” the envoy said, adding that Iran also boasts a good market and can facilitate relations between Mercosur and Eurasian countries.
Ahmad Naderi, the head of Iran-Brazil Parliamentary Friendship Group, said that with the opening of the chamber, exports from Iran to Brazil will increase to balance trade between the two countries as imports from the South American country currently outweigh exports.
