The complete analysis is detailed in the VPB Bulletin – January 2017 Edition
Rural producers will see an increase in income again this year. The Gross Value of Production (VBP), which measures revenue “from the gate inward” in agricultural activity, is expected to grow by 5.6% in 2017 compared to last year and reach R$ 573 billion.
The estimate is from the Brazilian Agriculture and Livestock Confederation (CNA). The result is mainly attributed to the good prospects for an increase in the 2016/2017 grain harvest, of 15.3%. In this way, the agricultural sector will see an increase of 7.22% in gross revenue, which will amount to R$ 345.3 billion.
Livestock VBP is also expected to grow by 2.76% compared to 2016, with estimated revenue of R$ 202.6 billion, given the increase in the production of meat, poultry, pork and milk.
For soybeans, responsible for almost 25% of the agricultural sector's VBP, the increase in the harvest will compensate for the drop in prices. In this way, revenue from the oilseed will increase by 8.7% compared to 2016, to R$ 139.2 billion.
Cotton revenue will increase by 10.1% in revenue. The gross value of corn will increase by 26.9% (R$ 64.7 billion), reflecting good prices in the domestic and foreign markets and the increase in production.
For livestock products, the estimate is an increase in revenue for beef (2%), chicken (4%), milk (4.5%) and pork (2%). For these segments, the estimate is for an increase in production in 2017 compared to 2016. Layer poultry farming (egg production) should remain stable compared to last year.
