The Brazilian Agriculture and Livestock Confederation (CNA) today presented (05) the outlook for the agricultural sector in 2019. Given the favorable climate, a larger grain harvest is expected, with a positive result for the Gross Domestic Product (GDP) ( + 2%) and also to the Gross Value of Production (VBP), which is expected to grow 4.3%.
The highlight of the productive sector should again be the national production of grains, especially soybeans, which according to the ANC should have an increase in the 2018/19 harvest of 6%, due to good climatic conditions in practically all states.
In the political scenario, the CNA considers it necessary to complete tax and pension reforms in the new government to allow the sector to grow. Other important points for 2019 are the improvement of infrastructure and logistics conditions, security in the field, the introduction of regulatory frameworks and the expansion of technical and managerial assistance for producers with the objective of proposing improvements in the income of the agricultural sector.
The entity also expects to conclude trade agreements with South Korea, Mexico, Canada and other markets, with measures to promote trade facilitation, removal of sanitary and phytosanitary barriers and tariff reductions.
Exports were highlighted in 2018
During a press conference to present the estimates, the entity highlighted the difficulties faced by the sector this year, such as the truckers’ strike and the freight table. For the CNA, these factors caused a rise in food and fertilizer prices.
However, the sector was a highlight in exports, with revenues of US $ 93.3 billion from January to November, up 4.6% over the same period last year, accounting for 42% of the country’s total foreign sales. Agriculture also made an important contribution to the generation of jobs, with a positive balance of 74.5 thousand jobs, 10% of the total, being the fourth segment that offered the most vacancies in the country.
The most prominent products in 2018 were soybeans in grains, cellulose, soybean meal, chicken meat and sugar cane. The main destinations for Brazilian agricultural exports were China (29%), the European Union (17.2%) and the United States (6.7%).
Despite the good performance of exports, the Gross Domestic Product (GDP) of agribusiness is expected to close 2018, down 1.6% from 2017. The CNA points out that the sector was badly affected by the truck drivers’ stoppage, which increased the price of agricultural inputs and affected the commercialization of primary production (inside the gate), which is expected to fall by 4.2% due to climate problems and fall in prices.
This text was translated by machine from Brazilian Portuguese.