Gross value of agricultural production should reach R$ 608.6 billion on 2019

Gross Production Value (VBP) is expected to grow 0.1% in 2019 compared to last year and total R $ 608.6 billion, according to estimates by the Brazilian Confederation of Agriculture and Livestock (CNA). The expectation for the VBP, which measures gross revenue from “in-door” activity, is high in livestock revenue (7.8%) and fall in agriculture (-4.1%) compared to 2018.

In this context, livestock revenues should rise from R $ 215.03 billion in 2018 to R $ 231.7 billion this year. Already the projection for the VBP of agriculture is of decrease of R $ 393.1 billion to R $ 376,8 billion in the same period.

“Data from January to July 2019 show a substantial increase in agricultural and livestock production compared to 2018. But while for livestock activities prices have also grown - albeit at a slower pace compared to production - agricultural crops in general have observed decline in prices ”, explains the CNA.

In livestock, the main expected increases are for the pork (19.9%) and chicken (14.2%) sectors. The revenues of the beef sector should rise 2.7%. Milk and eggs will also rise this year compared to last year, 9.8% and 7.8%, respectively.

Soybeans should have a 14.8% drop in GVP in 2019, totaling R $ 142.5 billion, driven by the 11% reduction in prices and 3.5% in production. Coffee, sugar cane and rice will also have lower revenues in 2019, reflecting lower prices and production. For corn, the scenario is up 15.9% of GVP, driven by the 23% increase in production, despite the 5.8% fall in prices this year. 

Post: Marina Carvejani 
Author: DATAGRO