Iran traded 5,585 tons of non-oil goods worth $12.75 million with Latin American countries in the first month of the current fiscal year (March 21-April 20), the latest data released by the Islamic Republic of Iran Customs Administration show.
Iran exported goods to only four Latin American countries and imported from three out of 33 Latin American countries during the period.
Trade with Brazil stood at 5,329 tons worth $12.26 million, for the Latin American country to top the list of Iran’s partners in the region. It was followed by Venezuela with 38 tons worth $158,605 and Colombia with 129 tons worth $121,645.
Iran’s exports totaled 226 tons worth $521,087 during the period under review.
Brazil was the biggest export destination among Latin American nations with 57 tons worth $240,373. It was followed by Venezuela with 38 tons worth $158,605 and Colombia with 129 tons worth $121,645.
Imports, which stood at 5,359 tons worth $12.23 million during the period, mainly came from Brazil with 5,271 tons worth $12.02 million, Mexico with 87 tons worth $151,647 and Argentina with a ton worth $55,999.
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.
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 in the coming months, the CEO of Iran Animal Farmers National Union said recently.
“The conflict between Ukraine and Russia, as well as 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 expanding bilateral commercial interactions.
A total of 15.5 million tons worth $6.47 billion of raw materials for animal feed production were imported to Iran 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 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 animal feed producers 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 for signing agreements with the National Petrochemical Company and working on the prospects of Iran tripling its 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.
Urea is mainly 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,” the minister said.
The NPC president said the company is also ready to supply other petrochemical products to the market.
NPC is a subsidiary of Iran’s 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 producers. Iran’s annual urea production is estimated to be over 5 million tons, most of it is for the domestic market, while the remainder is exported.
During a reception at the Brazil-Iran Business Forum in Tehran, the minister stated that with the importation of soy-derived products, corn and meat, Iran has become the largest client of Brazilian agriculture in the Middle East.
However, Brazil is interested in expanding its export portfolio to include cotton, rice and sugar, she added.
Cristina noted that Brazil is prepared to increase its purchase 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 added.
She 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 address and cooperate 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. This is while Brazil imposes over 100% in duties on Iranian exports.
Amini 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 a meeting held in the presence of Iranian and Brazilian officials and parliament members, Mehr News Agency reported on Nov. 20.
Addressing the gathering, Iran's Ambassador to Brazil Hossein Gharibi expressed satisfaction with the inauguration of such an entity 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 bilateral trade, as imports from the South American country currently outweigh exports.
