The executive director of the Brazilian Agribusiness Association (Abag), Luiz Cornachionni, said on Wednesday (28), during an Agrishow 2018 presentation conference in São Paulo (SP), that the margins of profitability of Brazilian farmers, especially grains will remain tight this year.
According to the director, the gross revenue of agricultural production may even register slight growth, but the margins should remain at levels similar to those obtained in 2017. “I have talked to producers, and many tell me that they have their margins at the limit.”
According to Cornachionni, the fall in the grain harvest in Argentina, the commercial tension between the United States and China – which may open a new window of opportunities for Brazilian soybeans – and the recent dynamics of appreciation of the dollar are factors that give a positive producers.
However, he noted that high production costs as well as transport and storage costs – since logistics infrastructure is still poor, despite some progress – erode the net result for the producer.