According to calculations by Cepea (Center for Advanced Studies in Applied Economics), Esalq / USP, with the support of the Secretariat of Agriculture, Livestock and Supply of Minas Gerais (SEAPA), the GDP of agribusiness in Minas Gerais closed 2017, down 5.96% ), the Federation of Agriculture and Livestock of the State of Minas Gerais (Faemg) and the National Rural Apprenticeship Service – Regional Administration of Minas Gerais (Senar-AR / MG).
According to research by Cepea, the annual decline was linked to the sharp decline of 10.83% observed in the agricultural sector in the accumulated of the year, since the livestock branch recorded a slight increase of 0.07%. As verified at the national level, the fall in the income of the agribusiness of Minas Gerais was related to the reduction of prices in several activities. This movement, in turn, was motivated by the greater supply in the market, resulting from the favorable climate and investments in the crops. In the case of Minas Gerais, the negative performance of important activities such as coffee (year of negative bienniality) and milk (which presented a great reduction of price through a higher supply) is still outstanding.
Regarding the national macroeconomic environment, the cumulative rate of Brazilian GDP, which shows the volume variation in relation to the same period of the previous year, calculated by the IBGE, showed a 1% evolution. In 2017, the growth of 13% in the agricultural segment was highlighted. The Brazilian economy shows signs of a slight recovery, driven by the large volume of agricultural production, with the consolidation of the grain supersafra. However, despite the high volume of agricultural production, this sector has presented a reduction in income, with a drop in the price of most products.