In 2017, Brazilian agribusiness boosted national GDP growth (which increased by 1%) and helped control inflation. According to research carried out by Esalq / USP, in partnership with CNA (Brazilian Confederation of Agriculture and Livestock), the GDP-volume of Brazilian agribusiness grew by 7.6% in the year past.
Once again, the agricultural sector gave a boost to the GDP-volume, since it registered an increase of 9.2% in 2017. For the livestock industry, growth was 3.8%. According to researchers from Cepea, investments and a favorable climate have raised productivity in the field and contributed to the exceptional performance of Brazilian agricultural production.
The report points out that it is important to emphasize, however, that the high production was not reflected in the income increase of the agents involved in the agribusiness. On the contrary, the downward pressure of the average real prices of agribusiness products ended up suppressing the significant evolution in production volume and the sector’s GDP-income declined 4.6% in 2017. The downward movement of income was verified in all segments that make up agribusiness.
According to Cepea researchers, in general, the scenario of falling prices reflected the record supply of agricultural products, low international prices, real appreciation of the exchange rate during 2017 and domestic demand still weakened with effects of the Brazilian economic crisis.