The Gross Domestic Product (GDP) of Brazilian agribusiness grew 2.42% in January and February 2020 compared to the same period last year, according to the Confederation of Agriculture and Livestock of Brazil (CNA) and the Center for Advanced Studies in Applied Economics (Cepea). In a note, CNA says that the result was driven by the growth of the primary (3.86%), services (2.72%) and agribusiness (1.37%) segments. “The inputs sector fell by 0.7%. The livestock sector expanded by 4.61% in the two-month period, while the agricultural sector rose 1.33% in the same period in comparison with the first two-month period of 2019,” he said. According to the analysis of CNA and Cepea, the behavior of livestock is a reflection of the still heated market for animal proteins, which comes from 2019, “mainly related to the increase in the prices of pork and beef, as a result of the heated demand in the foreign market as a result of the African Swine Fever (PSA), and as a result of this increase in the prices of substitute proteins, such as chicken meat and eggs “. The result for agriculture, on the other hand, is attributed to the increase in GDP in primary activity in January and February, of 3.92%, due to higher prices compared to the same period in 2019, with emphasis on coffee, soybeans, corn and rice, among other factors. “It also reflects the expectation of greater production in the field, in addition to the positive bienniality for coffee. Conab points out that the grain harvest should be a record, even with the climatic problems in Rio Grande do Sul and the pandemic of the covid-19”, says the CNA.

Source: Revista Globo Rural