Iran traded 379,218 tons of non-oil goods worth $409.74 million with Latin American countries during the first seven months of the current fiscal year (March 21-Oct. 22), latest data released by the Islamic Republic of Iran Customs Administration show.
Iran exported goods to only 11 Latin American countries and imported from 10 of 33 Latin American countries during the period.
Trade with Brazil stood at 316,004 tons worth over $300.21 million, for the Latin American country to top the list of Iran’s partners in the region. It was followed by Argentina with 44,052 tons worth $82.67 million and Cuba with 164 kilograms worth $11.74 million.
Iran’s exports totaled 113,734 tons worth $61.22 million during the period under review.
Brazil topped the list of export destinations among Latin American states with 97,151 tons worth $49.57 million. It was followed by Venezuela with 15,884 tons worth $10.41 million and Chile with 188 tons worth $550,496.
Imports, which stood at 265,483 tons worth $348.51 million during the period under review, mainly came from Brazil and amounted to 218,852 tons worth $250.64 million, Argentina with 44,004 tons worth $82.52 million and Cuba with 164 kilograms worth $11.74 million.
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.
Brazil to Replace Ukraine in Supplying 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 in 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 ground 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 reached 3 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 Agriculture Minister’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 importing more Iranian urea and highlighted the quality of the Iranian fertilizer used 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.
