Agricultural sector forecasts revenues of R$670bn in 2020

The Brazilian Agriculture and Livestock Confederation (CNA) forecasts a 9.8% increase in the sector’s revenue in 2020, compared to 2019. It is expected that the Gross Production Value (GPV), an index that measures revenue “inside the gate”, will total around R$669.7bn. For the sector’s Gross Domestic Product (GDP), the forecast is for growth of 3% in 2020.

According to the entity, the flagship of the revenue will be agriculture, with a growth forecast of 14.1%, equivalent to R$265.8bn. In CNA’s assessment, the prospect of increased production will make 2020 considered “the year of the sector”.

In the case of beef, the expectation is for an expansion of 22.2% in the GPV, reaching revenues of R$129.1bn. For pigs, an increase of 9.8% in GPV is expected. Dairy farming should grow by 7.5% GPV; and chicken, 7.1%.

According to CNA’s technical superintendent Bruno Lucci, “the [meat] producer will react, spurred on by price, and will invest in technology to gain scale.” According to him, with this, “there will be no shortage of meat in the Brazilian market”.

In 2020, the GPV of agriculture is expected to grow 7.2%, reaching R$403bn. The main highlight will be soybeans, with a forecast of 14.1%, ending the agricultural year (which runs from August to July) with a profit of R$165.2bn. This increase is attributed to higher prices and production, according to CNA.

In presenting the balance of forecasts, the president of CNA, João Martins, informed that the entity is concerned about the social inequalities observed in the sector. “Less than 10% of farmers own 84% of the sector’s income. This shows that few are benefiting from the sector’s poignancy,” he warned.

To reduce this distortion, CNA aims to facilitate access to technical assistance for these producers. This measure is expected to result in the “creation of a new middle class in the sector”.

Source: Agência Brasil

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