São Paulo’s Agribusiness Surplus Shrinks, but State Holds Lead in Brazil’s Export Market

São Paulo’s agribusiness sector posted a US$4.9 billion trade surplus in the first quarter of 2025, according to official state and agricultural research sources.

The figure marks a 19.9% drop from the previous year, reflecting a mix of market pressures and shifting trade dynamics.

Despite the setback, São Paulo remains Brazil’s top exporter of agricultural goods, highlighting the sector’s resilience and strategic role in the state economy.

Exports from São Paulo’s agribusiness reached US$6.40 billion, down 14.6% from the same period in 2024. Imports rose to US$1.50 billion, a 9.5% increase year-over-year.

The sector accounted for 41.7% of all state exports, while agribusiness imports made up 6.8% of total imports.

The drop in surplus stems mainly from weaker international prices and a sharp fall in sugar exports, São Paulo’s leading commodity.

Higher global supply from India, Thailand, and the European Union, combined with a stronger real, prompted producers to favor the domestic market, where prices offered better returns.

The sugar and ethanol complex led São Paulo’s export groups, representing 25.8% (US$1.65 billion) of agribusiness exports.

Sugar made up 88.7% of this group, with ethanol at 11.3%. The meat sector followed, accounting for 13.9% (US$887.91 million), with beef representing 82.5%.

Orange juice exports totaled US$863.07 million, making up 13.5% of the state’s agribusiness exports.

Forestry products contributed 11.9% (US$758.98 million), while the soy complex brought in 7.9% (US$507.27 million).

Coffee ranked sixth, with a 7.3% share (US$465.75 million), led by green and soluble coffee.

São Paulo’s Agribusiness Surplus Shrinks, but State Holds Lead in Brazil’s Export Market

China remained the top destination for São Paulo’s agribusiness, taking 19.3% of exports, mainly soy, meat, and forestry products.

The European Union and United States followed, with 16.4% and 15.9% shares, respectively.

São Paulo’s shipments to China fell by 12.6%, but exports to the EU and US rose by 34.4% and 27.7%.

Nationally, Brazil’s agribusiness exports grew 2.1% to US$37.83 billion in the quarter, with São Paulo responsible for 16.9% of the total.

The state’s performance, though dampened by global competition and price changes, underscores the enduring strength of its diversified agribusiness sector.

This resilience continues to anchor São Paulo’s economy and supports Brazil’s trade balance.