Wheat bran, sharps and residues market in MERCOSUR

Earlier Report Observations

The market for wheat bran, sharps, and residues in MERCOSUR experienced a slight contraction in 2019, followed by a recovery in 2020. This rebound coincided with Brazil's decision to open a zero-tariff import quota for wheat from outside the bloc, a move that increased the availability of wheat for processing and subsequently supported the production of milling by-products like bran across the region.

Market volume continued its upward trajectory through 2023, reaching over 3.6 million tonnes. Growth was particularly supported by rising wheat milling activity in Brazil, which increased by 2% in 2023. This expansion in primary processing was coupled with stronger demand for wheat bran from the animal feed industry, which consumed greater volumes despite competition from alternative ingredients like soybean and corn bran.

Industry developments in 2024 pointed towards sustained momentum, with wheat milling in Brazil growing by a further 3%. This growth reflected ongoing investments and modernization in the sector, while regional trade negotiations within MERCOSUR continued to shape the export landscape for agricultural by-products.

Production wheat bran, sharps and residues in MERCOSUR

In kind, 2017-2020, K t

Top producers of wheat bran, sharps and residues, 2017-2020

World map of production of wheat bran, sharps and residues, 2017-2020

MERCOSUR's production of wheat bran, sharps, and residues has grown for the third year in a row. In 2020, the region produced 3 574 K t, showing a modest year-over-year increase of 1.3%. From 2017 to 2020, production rose by 16.5%, with an average annual growth rate of 5.2%.

Annual dynamics of production in MERCOSUR in kind, 2017-2020, K t

In value, 2017-2020, M $ US

In 2020, the value of wheat bran, sharps, and residues production in MERCOSUR reached 504.1 M $ US, up 6.5% from the previous year. Between 2017 and 2020, production value increased by 5.6%, translating to an annualized rate of 1.8%. The lowest value was in 2019 at 473.3 M $ US, while the highest was in 2018 at 622.2 M $ US. The most significant drop occurred in 2019 with a 23.9% decrease, and the largest rise was in 2018 with a 30.3% increase.

Annual dynamics of production in MERCOSUR in value, 2017-2020, M $ US

Exports wheat bran, sharps and residues from MERCOSUR

Exports in kind, K t

The market exhibited volatility during the observed period. Exports reached their lowest point in 2017 and peaked in 2019, with a 3.8-fold difference between these years. In 2020, MERCOSUR exported 176.5 K t of wheat bran, sharps, and residues, reflecting a moderate 3.6% decline compared to the previous year. The highest volume was recorded in 2019 at 183.2 K t, with the largest increase that year at 260.5%.

Annual dynamics of product's exports from MERCOSUR in kind, 2017-2020, K t

From 2017 to 2020, Saudi Arabia, Morocco, and Oman were the top contributors to exports in kind, accounting for 35.1%, 14.0%, and 4.7% of the total, respectively. Together, they made up 53.9% of all export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from MERCOSUR in kind, 2017-2020

Exports in value, K $ US

MERCOSUR's exports of wheat bran, sharps, and residues in value terms have increased for the third consecutive year. In 2020, exports totaled 24 899 K $ US, marking a slight rise of 1.3% year-over-year. Between 2017 and 2020, export value surged by 236.3%, with an average annual growth rate of 49.8%.

Annual dynamics of product's exports from MERCOSUR in value, 2017-2020, K $ US

During 2017–2020, Saudi Arabia, Morocco, and Oman held the largest shares of exports in value terms, contributing 37.5%, 14.0%, and 4.9%, respectively. Combined, they represented 56.4% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from MERCOSUR in value, 2017-2020

Imports wheat bran, sharps and residues to MERCOSUR

Imports in kind, K t

In 2020, MERCOSUR imported 54.1 K t of wheat bran, sharps, and residues, a substantial 53.5% increase from 2019. Over the 2017-2020 period, imports decreased by 10.1%, with a compound annual growth rate of -3.5%. The lowest volume was in 2019 at 35.2 K t, and the highest was in 2018 at 65.1 K t. The most significant decline occurred in 2019 with a 45.9% drop.

Annual dynamics of product's imports to MERCOSUR in kind, 2017-2020, K t

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to MERCOSUR in kind, 2017-2020

Imports in value, K $ US

MERCOSUR imported 10 210 K $ US of wheat bran, sharps, and residues in 2020, showing a sharp 54.9% year-over-year increase. From 2017 to 2020, import value rose by 2.6%, with an average annual growth rate of 0.9%. The minimum value was in 2019 at 6 589 K $ US, while the maximum was in 2018 at 11 928 K $ US. The largest decrease was in 2019 with a 44.8% fall.

Annual dynamics of product's imports to MERCOSUR in value, 2017-2020, K $ US

Between 2017 and 2020, Poland, the United States, and Czechia were the primary markets for imports in value terms, accounting for 2.2%, 1.8%, and 0.7% of the total, respectively. Together, they comprised 4.7% of all import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to MERCOSUR in value, 2017-2020