The Gross Domestic Product (GDP) of Brazilian agribusiness grew by 4.62% from January to May this year compared to the same period in 2019, according to the Brazilian Confederation of Agriculture and Livestock (CNA) and the Center for Advanced Studies in Applied Economics (Cepea).
The result was mainly driven by primary activity (within the gate), which expanded by 11.67% in the first five months of 2020, due to the rise in prices and the estimated increase in production. In other segments of the global agribusiness chain, services registered an increase of 4.51%, while inputs increased by 1%.
Agroindustry was the only one to have an accumulated drop, of 0.24%. In monthly performance, agribusiness GDP increased by 0.78% in May this year compared to the same month in 2019, with a positive result for the primary sectors (3.08%), services (0.49%), inputs (0.17%) and decline 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 in 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. Highlight once again for the primary sector, with an expansion of 15.17%.
Corn, coffee, cocoa, rice, soybeans and wheat, all with price increases of more than 15%, were the crops that stood out the most. In terms of production, the highest harvest estimates are for: cotton, rice, cocoa, coffee, beans, oranges, corn, soybeans, wheat and cellulose wood.
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For the input and agro-services segments of the agricultural sector, the increases in the period from January to May were 0.85% and 0.69%, respectively, while agroindustry had a decline (-3.07%).
In the month, global agricultural GDP, which had declined in April due to the pandemic, resumed growth in May, at 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 drop in agroindustry (-1.15%).
In relation to the livestock sector, GDP increased by 9% in the first five months of the year, with growth throughout the entire production chain. The result reflects the good prices for animal proteins until May 2020. Services were the segment with the greatest expansion in the period (11,53%), followed by agroindustry (9,04%), primary (6,20%) and inputs (1,32%). According to CNA/Cepea, an increase in revenue is expected for pig and cattle farming and egg production.
In May, livestock production grew by 0.9%. As in the year to date, all segments increased: 0.37% for inputs, 0.54% for primary activity, 0.83% for agroindustry and 1.22% for agroservices.
Source: DATA
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