Agricultural revenue grows 1.7% above inflation

The Gross Value of Agricultural Production in Paraná (VBP), in 2016, reached R$ 88.83 billion, which corresponds to a real growth of 1.7% compared to the previous year, when R$ 87.38 billion was achieved.

This is the definitive version of the gross revenue of agricultural production in Paraná recorded by the Department of Rural Economy (Deral), of the State Secretariat for Agriculture and Supply, and which will make up the basket of indices that are used to calculate transfers from the government of Paraná. State to the Municipal Participation Fund, referring to ICMS next year.

For the State Secretary of Agriculture, Norberto Ortigara, despite 2016 being a difficult year for the economy and with adverse weather during the development of crops, the result proves that the agricultural sector in Paraná still presented a positive result. “There was real growth, motivated by the good prices achieved for the main commodities produced and sold in Paraná”, he stated.

For this year (2017), the outlook for the Gross Production Value is to increase because the grain harvest, which is in the final harvest phase, was exceptional and should reach a volume of up to 40 million tons in the State. The director of the Department of Rural Economy (Deral), Francisco Simioni, highlighted that the growth trend in gross production revenue this year may not be as significant, but remains positive. “If on the one hand production continues to rise, on the other this year there is a strong decline in the prices of the main commodities such as soybeans, corn, beef and milk”, warned Simioni.

According to Deral, the 2015/16 harvest was marked by a climate that harmed the productive potential of the plants. There were irregularities in the climate during the development of the summer harvest, sometimes with rain, sometimes with droughts and abrupt variations in temperature. And in winter, there were 12 consecutive frosts at the beginning of the season.

Even so, the grain harvest reached a volume of 35.1 million tons and, supported by good prices in the main commodities such as soybeans, corn, wheat, milk and meat, they were the ones that most boosted revenue in the field. Historically, soy remains in the lead as the main product in the formation of Gross Production Value, occupying an area between 85% and 90% of the total available in the State. This year, soybean cultivation should occupy approximately 91% of the area available for grain cultivation in the first spring/summer harvest.

 

 

According to Deral, the products that contributed most to the VBP were soybeans, with gross revenue of R$ 19.4 billion; broiler chicken with revenue of R$ 14.9 billion. Next comes corn, with revenues of R$ 7.4 billion. These products represent, respectively, 22%, 17% and 8% of gross production revenue, explained economist Marcelo da Silva Gomes, technically responsible for calculating and preparing the VBP.

Specifically in livestock farming, gross revenue from poultry farming – broiler chicken, continues to be the most important item in livestock farming in Paraná. Even in the face of a difficult situation for poultry farming in 2016, facing the rise in production costs due to the increase in the price of corn, revenue from chicken slaughter was 9% above 2015 and Paraná remains the largest national producer and exporter of this protein.

Pig farming, despite having had a more modest increase of 3% in the number of animals slaughtered, also had positive growth and has prospects for ascendancy given the investments in the productive sector in modernization and industrial innovation. Milk production was 0.1% higher in 2016, reaching 4.8 billion liters. There was an increase in production costs, due to the rise in the price of corn, but total revenue from milk production was R$ 6 billion, 20% more than in 2015.

REGIONS – The Western region remains in the lead in terms of contribution to gross production revenue, with a VBP reaching R$ 19.3 billion, which corresponds to a growth of 2.6% over the previous year. The good performance of poultry farming and grain production, even in a scenario of rising production costs, supported regional progress, analyzed Marcelo da Silva Gomes.

 

 

According to the economist, the region concentrates a large part of pig breeding and slaughtering (68% from the State). It also stands out in poultry farming with 31% of Paraná production, 34% of corn production and 22% of soybean production in the State. In addition to these already consolidated chains, fish farming has been growing, which corresponds to 69% of the income generated from freshwater fish in Paraná.

 

The West also has the largest municipal VBPs, with Toledo in first place, with gross revenue of R$ 2.2 billion; and Cascavel, in second place, with R$ 1.7 billion.

The second region that contributed most to VBP, according to Deral, was North Central, with revenues of R$ 11.7 billion. But in 2016 it was greatly affected by the weather.

A similar situation occurred in the Northern Pioneer Region, which had a VBP of R$ 7.4 billion and which also showed a drop, especially due to the drop in grain production caused by irregularities in the weather.

The Southwest is the third largest region in terms of revenue, with a result of R$ 10 billion in 2016, which corresponded to a growth of R$ 6.2% compared to the previous year. This increase in revenue was due to greater gains from the sale of milk, as well as an increase in the number of chicken slaughters and greater revenue from the sale of soybeans and corn.

The North-West region of the State, which grew by 5.7% with gross revenue of R$ 8.6 billion, has also been investing in poultry production in recent years, with an increase in the number of chicken slaughters. Cattle farming in the region is also being strengthened, applying force to livestock farming. Other important crops in the region, which also saw an increase in production and revenue, were sugar cane, cassava and milk production.

The Central-South region had a turnover 7% higher than in 2015, reaching a total of R$ 6.6 billion due to greater gains with its main products such as soybeans, milk and corn, among others that also had positive performance such as potatoes, wheat and bean.

 

 

Other regions that are major grain producers and showed good agricultural development were Campo Mourão and Campos Gerais, with growth of 2% and 2.4%, respectively. The Campo Mourão nucleus, made up of 25 municipalities, is the one that produces the most soybeans in the State, with more than 2 million tons in the 2015/16 harvest. In Campos Gerais, Castro is located, which ranks third among the municipalities with the highest VBPs, with revenue of R$ 1.6 billion in 2016. It is also the municipality with the highest milk production, with 255 million liters produced in the year past, standing out as the largest producer in the State, with a production volume of 255 million liters in 2016.

Still in Campos Gerais, the municipality that produces the most soybeans in the State is located, which is Tibagi, with a volume of 395 thousand tons.

Deral carries out annual research, collection and estimation of gross revenue from Paraná's agricultural production of approximately 350 items throughout the State, between the months of January and July. The results are used by the State Department of Finance to compose the basket of indices that form the Municipal Participation Fund (FPM) for next year.

Look HERE the percentage distribution of the Gross Value of Production in Paraná 2016 – Main Products

check out HERE the performance of the 2016 Gross Production Value by municipality in the link below:

Source: Agrolink

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