Agro-industry posts best production result in 14 years through October

Agribusiness production surged in October, driven by robust domestic demand and a steady pace of exports. The PIMAgro Agroindustrial Production Index, compiled by the Getulio Vargas Foundation’s Center for Agribusiness Studies (FGV Agro), recorded a 4.2% increase compared to October 2023, with growth spanning nearly all segments.

This performance marks a 2.7% expansion in agribusiness for the first ten months of 2024, the strongest result since 2010. Even if production levels in November and December remain consistent with last year, the sector is poised to close 2024 with its best performance in 14 years.

FGV Agro predicts that a 2.5% growth in the final two months of the year will cement this milestone.

Non-food segments posted a remarkable 7.4% growth in October, the second-best monthly result in the series dating back to January 2002. Tobacco production led the way with a staggering 23.1% increase, reversing losses caused by severe floods in Rio Grande do Sul earlier this year, a key hub for the country’s tobacco production.

Textile products and agricultural inputs also saw robust gains, with growth rates of 10.7% and 8.3%, respectively. Within inputs, pesticide and household disinfectant production soared by 29.7%, buoyed by a more favorable outlook for the grain harvest and improved corn exchange ratios. However, input production remains 3.9% lower year-to-date, reflecting cautious investment by producers following tight margins and climate-related setbacks in Rio Grande do Sul. Meanwhile, biofuel production expanded by 3.4% in October.

After two months of decline, the food and beverage segment posted a modest 1.4% increase in October.

The agro-food industries grew by 2.4%, driven largely by the meat sector and an initial rebound in the oils and fats segment. Production in animal-based food rose by 3.8%, while plant-based food production edged up by 0.4%, halting a three-month decline.

However, decreases in rice, preserves, juices, sugar, and coffee output dampened the overall recovery in October in plant-based food. Year-to-date, this segment remains the only one with a contraction compared to 2023.

Here’s a chart that shows the container trade of Brazilian coffee bean shipments between January 2021 and October 2024. This powerful information was derived from DataLiner. Readers may request an access demo through the link below.

Coffee Bean Exports | Jan 2021 – Oct 2024 | TEUs

Source: DataLiner (click here to request a demo)

In the beverages category, production dropped by 4% in October, with alcoholic beverages declining by 5% and non-alcoholic beverages by 2.9%. Despite this setback, the segment has grown by 2.8% over the year.

Translation: Todd Harkin

Source: Valor International

Original reporting: https://valorinternational.globo.com/agribusiness/news/2024/12/20/agro-industry-posts-best-production-result-in-14-years-through-october.ghtml

Sharing is caring!