The GDP (Gross Domestic Product) of agribusiness fell by 0.8% in the first quarter of this year, compared to the same period last year. This drop is due to the increase in inputs, which affected both agriculture and agro-industry.
With this drop, agribusiness reduces its participation in the national economy to 26.2% in the first quarter of this year. Last year, it was 27.6%.
The data are from Cepea (Center for Advanced Studies in Applied Economics), in partnership with the CNA (Confederation of Agriculture and Livestock of Brazil).
The IBGE (Brazilian Institute of Geography and Statistics) brings very different figures for the GDP of the same period. According to the official organ, the evolution was negative in 8%.
Data from CNA and Cepea, however, are not comparable with those from IBGE. The government agency monitors production within the gate. It only considers the volume achieved by producers in the period.
The CNA, on the other hand, according to the research carried out by Cepea, encompasses all agribusiness. In addition to the production inside the gate and the prices of goods, it takes into account the entire agribusiness, including inputs, agro-industry and agro-services.
The only segment that had a positive evolution in the GDP in this first quarter was the one of inputs. It registered a growth of 9.6%. This rise is due to the evolution of the prices of fertilizers, pesticides and machinery.
The GDP of the primary sector fell by 2.48% in the first quarter, caused by the 4.22% drop in agriculture. Livestock grew by 1.2%.
In the agro-industrial segment, Cepea and CNA also recorded a drop in GDP. The reduction was 0.43%, caused by the costs of the agro-industry, both in the agricultural and livestock sectors.
The agro-services sector, reflecting the lower production of agricultural and agro-industrial products, in addition to the narrowing of margins, fell by 1.51%.
agricultural credit Agribusiness is demanding an increasing volume of credit. The problem is that the sector’s main source of funding is official government-subsidized credit, which, with increased governance and fiscal austerity, will be increasingly restricted in the future.
fiagro One of the ways out is Fiagro, a broader movement that serves as a financing structure for the sector’s chain as a whole, according to Bruno Rafael Santana, CEO of Kijani Investimentos. The planting area increases and costs rise, which will require more credit. Financing, in the future, passes through the capital market, with Fiagro being one of the main instruments.
Attraction Competitive profitability, exemption from Income Tax and an additional means for investors to participate in agribusiness are incentives for this modality. With accumulated funding of R$ 2.4 billion, the growth potential is great, says Santana.
Spray The money raised by Fiagro is going to the main production chains, such as large producers and sugar and ethanol plants. The important thing, however, is that there is a sectorial spraying. In the case of Kijani, in addition to these chains, investment is directed towards the animal protein, seed production, logistics and food sectors, says Santana.
arousing interest To reinforce its administration and production projects, Laticínio Scala encouraged employees to send proposals to the company. 169 were received.
Arousing interest 2 Of these, the company approved 37 for evaluation and validation. The goal is to continue with at least 20 of them that, after passing through an evaluation committee, can be implemented throughout the company.
Corn The safrinha is expected to reach 89.3 million tons this year, 1.7 million more than was projected by Agroconsult in May. These numbers come from an expansion of the sown area, now estimated at 16.3 million hectares, and from a higher productivity per hectare.
corn 2 If Agroconsult’s data are confirmed in the off-season, total corn production for the 2022/23 harvest will reach 114.8 million tons, 30.9% more than in the previous one, which was affected by drought and frost.
Soy The consultancy also reassessed this year’s soybean production to 126.9 million tons. Although the volume is 2.3 million tons more than projected in March, this year’s crop will be at least 40 million tons below its initial potential, according to André Debastiani, coordinator of the Safra Rally, an annual project by Agroconsult. crop monitoring.
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