The Gross Domestic Product (GDP) of agribusiness rose by 0.10% in March, but in the first three months of the year the result was a drop of 0.11%, according to the Brazilian Confederation of Agriculture and Livestock (CNA) and the Center for Advanced Studies in Applied Economics (Cepea).
The monthly result was driven by livestock, which rose 0.52%, while the agricultural segment fell 0.05%. The study showed an increase in the inputs (0.83%), agribusiness (0.16%) and services (0.12%) sectors in March, while in the same period the primary sector fell 0.17%.
In the quarter, agriculture contracted by 0.16%, mainly influenced by the drop of 2.18% in primary activity, despite the positive variation in other links in the agricultural production chain. Livestock farming varied by 0.04%, with growth seen in the inputs (2.14%) and primary production (2.29%) sectors.
The inputs segment had the best performance within the agribusiness chain in the first quarter, at 3.45%. In agriculture, the increase was 4.05%, driven by fertilizers, which had significant price increases, and by the growth in pesticide production. In livestock, the increase of 2.14% in the period was driven by feed prices.
In primary production, despite rising prices, the increase in production costs continues to reduce the profitability generated in agribusiness.
Post: Marina Carvejani
Author: Industrial Pig Farming
Source: agrolink
