Shuttle: South Region increases participation in the country’s agricultural revenues in 2023

After a drop of 15% this year, the GPV (Gross Production Value) of the South region will again have a greater participation in the revenue of the country’s crops.

Affected by several droughts, mainly in Rio Grande do Sul, the region was losing ground. The VBP of crops should fall to R$ 150 billion this year, after having reached R$ 195 billion in 2021, according to the Ministry of Agriculture.

The climatic effects have mainly affected rice, corn and soy crops in the region, products that have been registering lower revenues. The production value was only lower because commodity prices remain high.

Persistent droughts in the South made the grain harvest fall to 65.2 million tons this year. In the next one, if the weather helps, the volume rises to 93.3 million, according to estimates by Conab (Companhia Nacional de Abastecimento).

In 2023, crops in Paraná should yield 45.3 million tons of grain, 34% more than this year. Corn production grows 17%; and soy, 70% in the period.

The recovery in Rio Grande do Sul will be even greater. The gauchos can get a grain harvest of 41.1 million tons, 62% more than this year.

Corn and soy, the production leaders in the state, will have a strong evolution. Cereal production rises 101%; the oilseed, 140%. The increase in production will take place in a period when there is not much room for a drop in prices.

In addition to soy and corn, livestock is very important in the South for irrigation of the region’s economy. A positive evolution of the grain harvest reduces the cost of protein production.

The states in the region are the main producers of pork and chicken meat. This year, the VBP of livestock in the South fell to R$ 130 billion, 3% below the 2021 value, according to estimates by the Ministry of Agriculture.

The likely good performance of production value in the South, in 2023, should not be repeated throughout Brazil. Corn and rice will practically not evolve in the national GPV. Already soy rises 15%, and wheat retreats 18%.

The country’s total VBP, including crops and livestock, should reach R$ 1.24 trillion next year, 4.9% above this year’s. The 17 crops monitored by the Ministry of Agriculture will total R$ 856 billion within the gate, 5.4% more than this year.

The country’s total livestock, which includes revenue from cattle, pigs, chicken, milk and eggs, rises to R$ 381 billion, 4% more.

Inflation Food continues to weigh heavily on consumers’ pockets. This is what a survey by Fipe (Fundação Instituto de Pesquisas Econômicas) carried out in São Paulo shows.

Inflation 2 In the last 30 days, the greatest pressure came from “in natura” products, which rose 4.75%. The leadership is with the tomato which, according to the survey, was discharged by 16% for the people of São Paulo.

Wholesale The prices of agricultural products, on the other hand, fell again in wholesale this month, according to the FGV’s IGP-10. The fall was 1.44%, slightly above the 1.33% of last month.

Wholesale 2 Among the hikes, the main ones were cassava (7%) and pork (5%). Agricultural products accumulate a 5% increase this year, according to the FGV.

agricultural GDP This year, the Gross Domestic Product of Agriculture should fall by 1.6%, according to estimates by the MacroSector consultancy. In 2023, it grows 1.5%.