Brazilian agriculture export reached a positive outcome in 2021 and has now a prominent role to play in market as an important foreign currency generator. Despite the decline of the volume exported in 2021, when compared to the previous year, the export revenue set a new record in 2021. This has only been possible with the high price of products shipped in Brazil. The Brazil GDP growth is projected to increase only 0.3% in 2022. Thus, agribusiness markets should remain linked to exports more than ever, with a consequent reduction of domestic supply. According to projections by international bodies, external food prices are likely to remain at high levels, but slightly below the records of 2021, since there are no significant weather damages. Even with the stagnation of the economy in Brazil, food and other agricultural products should remain relatively expensive.
Source: Cepea/Noticias Agrícolas (*Translated by Ia Niani)