PT | EN | ES |

Agribusiness GDP grows 4.62% from January to May

Posted by Marina

The Gross Domestic Product (GDP) of Brazilian agribusiness grew 4.62% in the accumulated result from January to May this year in relation to the same period of 2019, according to the Confederation of Agriculture and Livestock of Brazil (CNA) and the Center for Advanced Studies in Applied Economics (Cepea).

The result was driven mainly by primary activity (within the gate), which expanded by 11.67% in the first five months of 2020, due to the high prices and the estimated increase in production. In the other segments of the global agribusiness chain, services increased by 4.51%, while inputs increased by 1%.

The agribusiness was the only one to have a drop in accumulated, of 0.24%. In the monthly performance, the agribusiness GDP increased by 0.78% in May this year compared to the same month of 2019, with a positive result for the primary sectors (3.08%), services (0.49%), inputs (0.17%) and decrease in agroindustry (-0.68%), reflecting the negative impacts of COVID-19, especially on the agricultural industry.

The rise in prices was one of the factors that boosted GDP for both agriculture and livestock. In the agricultural sector, growth was 2.51% in the first five months of this year compared to the same period in 2019. Once again, the primary sector stands out, with an expansion of 15.17%.

Maize, coffee, cocoa, rice, soy and wheat, all with increases of more than 15% in prices, were the crops that stood out the most. In terms of production, the highest crop estimates are for: cotton, rice, cocoa, coffee, beans, oranges, corn, soybeans, wheat and wood for cellulose.

For the inputs and agribusiness segments in the agricultural sector, the increases in the period from January to May were 0.85% and 0.69%, respectively, while the agribusiness had retraction (-3.07%).

In the month, the global GDP of agriculture, which had fallen in April due to the pandemic, resumed growth in May, of 0.75%, driven by the expansion of the primary segment (4.62%). There were increases of 0.08% for inputs and 0.11% for agroservices, and a decrease in agroindustry (-1.15%).

In relation to the livestock sector, GDP increased by 9% in the first five months of the year, with growth in the entire production chain. The result reflects the good prices of animal proteins until May 2020. Services were the segment of greatest expansion in the period (11.53%), followed by agribusiness (9.04%), primary (6.20%) and inputs (1.32%). According to CNA / Cepea, high revenue is expected for the creation of pigs and cattle and for the production of eggs.

In May, livestock grew 0.9%. As in the accumulated result for the year, all segments increased: 0.37% for inputs, 0.54% for primary activity, 0.83% for agribusiness and 1.22% for agroservices.