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Gross Production Value is estimated at BRL 1.109 trillion for this year

Posted by Rafael Moro

Image: Pixabay

The Gross Value of Agricultural Production in Brazil (VBP) this year is estimated at BRL 1.109 trillion, 9.8% higher than last year (BRL 1.099 trillion), based on calculations updated in July. Crops represent R$757 billion, 12.8% above the 2020 value, and livestock, R$352 billion, 4% higher compared to last year.

“Despite this year's climate problems, such as the lack of rain and frost, the VBP is a historic record in a period of 32 years”, analyzes José Garcia Gasques, coordinator of Policy Assessment and Information at the Ministry of Agriculture, Livestock and Supply.

Corn had its loss of production offset by product prices, which increased 26.1% in real value. The products with the greatest growth in the VBP were rice, with real growth of 4.7%; sugarcane 3.9%; corn 11.8%, soybeans 28.7%; wheat 41.8%; beef 7.3%, and chicken 7.5%.

For this group of products, which represents 78% of the VBP, prices were decisive to obtain these results.

Several crops were affected by weather effects, but the most affected was corn. According to the IBGE, the drop in production was 11.6 million tons, and according to Conab, 16 million tons. These reductions combine the impacts of lack of rain and the occurrence of frost, mainly in the south of the country. Other crops, such as cotton and beans, were also affected by these events: beans had a reduction in productivity of 8%, and corn from second crop, 25.7%.

Conab, when presenting data from the 11th crop survey this Tuesday (10), points to a record increase in the planted area of ​​soy and also in productivity, on average, 3.5 tons per hectare.

A group of products has had a turnover below that obtained in 2020, such as cotton, peanuts, bananas, potatoes, cocoa, coffee, beans, oranges, cassava, tomatoes and grapes. In livestock, according to the survey, products such as pigs, eggs and milk were related to a reduction in the VBP. “We can associate this negative performance to lower prices, or smaller quantities, or even to the combination of these two factors”, justifies the research coordinator.

By: Dylan Della Pasqua | Safras & Mercado

This text was automatically translated from Portuguese.