The agricultural Gross Value of Production (VBP) is expected to reach a new record in 2020 and exceed revenue of R$ 823 billion, an increase of 13.7% compared to last year, according to a forecast from the Brazilian Confederation of Agriculture and Livestock.
For agriculture, the CNA projects an increase of 18%, with gross revenue of R$ 531.6 billion. The good result will be driven mainly by the record VBP of R$ 218 billion for soybeans (up from 23.8%). The increase of 4.3% in production and 18.7% in prices, in addition to high Chinese demand and the devaluation of the real against the dollar should also influence the VBP.
According to the CNA, other agricultural highlights are rice, Arabica coffee and wheat, which will have an increase in Gross Production Value of 33.9%, 51% and 59%, respectively. Production growth of 6.7%, 30% and 32%, in that order, is also estimated.
Livestock VBP is expected to grow by 6.6%, with revenue of R$ 291.7 billion. According to the Confederation, increases in production and prices of eggs and pork and beef prices should guarantee an increase of close to R$ 17.9 billion in revenue from livestock activity “within the gate”.
The low availability of animals for slaughter, which is expected to reduce beef production by approximately 3.6% in 2020, has, on the other hand, sustained high prices for beef cattle averaging 17.8% above the 2019 level .
Despite the good result of livestock farming, gross revenue from chicken and dairy activities is expected to decline by 3.7% and 4.3%, respectively. CNA estimates are based on price and production data available until August 2020.
Source: DATA
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