The Institute for Applied Economic Research (Ipea) has revised upwards estimates for the value-added agriculture from 2.2% to 2.6%. In comparison with 2020, crop output is expected to increase 2.7% and livestock production should increase by 2.5%. The upward revision is due to the upturn in results in 2021. The main risks are the water crisis, which could harm crop output more than expected, as well as the supply and demand uncertainties for livestock production. For crop production, the expected drop is for coffee (- 21,0%), cotton (-19.7%), corn (- 3.9%), and sugarcane (-3.1%), however, these drops should not undermine the good general performance assured by the high production of soybeans (9.4%), rice (2.8%) and wheat (27.9%).
Source: Portos e Navios (*Translated by Ia Niani)