In 2018, a survey of the Confederation of Agriculture and Livestock of Brazil (CNA), released on Wednesday (24), in Brasília (DF), shows that, on average, agricultural activity had a significant reduction in the profitability margin. The behavior was impacted by production costs, driven by rising prices of inputs such as fertilizers, energy, diesel oil and feed, and other factors such as truck stoppages.
“We observed that, mainly in the livestock activities, there was a significant reduction in the margins of production and an increase of costs in great part of them, mainly due to the increase of the prices of the ration”, explained the technical superintendent of the CNA, Bruno Lucchi.
In agriculture, soybeans and corn also showed a decrease in the margin, from 40% to 50%, due to lower price levels and greater supply. Bruno Lucchi also cited the increase in fertilizer prices from an average of 16% last year. “The producer who bought in the second half of the year found 18% higher because of the truck drivers’ strike and a higher exchange rate.”
Sugarcane was another crop with retraction in the margin due to the negative behavior in the sugar market. “In Brazil, rural activity is subject to climatic issues, price swings of marketed products and high inputs, which largely come from outside. This year, in particular, we had the freight tariff, which aggravated the issue of the management of rural properties. “, Added the vice president of the CNA, Muni Lourenço Silva Júnior.
This text was translated by machine from Brazilian Portuguese.