According to Fastmarkets' Latin American Monitor, Latin American countries such as Colombia, Chile, Argentina, and Brazil have reported an upturn in food export volumes in January and February 2023, despite initial concerns over the potential negative impacts of El Niño on agriculture and a slow economic recovery in developed nations. This development is particularly significant for the corrugated packaging industry in the region, which has faced challenges due to reduced export volumes amid a global economic downturn.
Chile's food exports, for instance, saw a 16% increase year on year in January, reaching 640,000 tonnes, with a notable rise in revenues from berry exports. Rafael Barisauskas, Fastmarkets' senior economist for Latin America, highlighted the importance of high-value food products like berries, which require quality packaging, thereby driving demand for corrugated packaging. Similarly, Colombia witnessed a significant surge in food exports in January, with volumes increasing by 93.2% year on year to 305,000 tonnes, fueling optimism for sustained demand in the packaging sector.
Barisauskas pointed out that food production plays a crucial role in driving containerboard demand in Latin America, accounting for approximately 66% of the region's total containerboard consumption. The emphasis on agriculture and food exports not only contributes to the gross domestic product (GDP) of these countries but also supports the paper packaging industry. Despite facing challenges in 2022 due to high inflation and interest rates, which impacted global consumption and the export markets, there is an anticipation of growth in the coming years, offering promising prospects for the packaging industry.
Source: fastmarkets.com