Gross Value of Agricultural Production 2019 is updated to R$609.5bn

The Gross Value of Agricultural Production of 2019 is estimated at R$609.5bn, based on October’s data. The value is 1.7% above the 2018 result, which was R$599.4bn.

In the estimate, the crops reach R$399.9bn and livestock, R$209.5bn. The value of livestock was raised by 6.6%, while crops had a reduction of 0.7%.

Most of the products analyzed have shown favorable behavior, according to research by the Secretariat of Agricultural Policy of the Ministry of Agriculture, Livestock, and Supply. Among these, the main highlights are: herbaceous cotton (production value increased 17.5% over last year), peanuts (12.4%), bananas (18.7%), english potatoes (101.4%) , beans (56.4%), oranges (4.5%), castor beans (37%), corn (23.8%), and tomatoes (10%). In some products, such as beans, potatoes, and tomatoes, prices were more decisive than the quantity to define the result.

The favorable results of livestock are present in almost all segments, except for milk that had a decrease in value compared to 2018. The best results have been in pork, chicken, and with a slight increase in beef. These products have benefited from increased exports (Agrostat, 2019). Egg production is in a good phase, having reached an increase of 21.6%.

There are few products that presented reduction in the value of production. However, it is a group with a strong participation in the value generated by agriculture. The following products are: rice (-5.2%), coffee (-27.6%), sugar cane (-9.3%), cassava (-13.9%), soybean (-11.3%), and grapes (-4.5%).

Gross Value of Agricultural Production 2020 estimates

According to Conab projections, the 2019/2020 grain harvest should reach 246.37m tons, considered the largest in the country’s history, and 1.8% above 2018/2019. Within the estimated total, 98.4m tons of corn and 120.9m tons of soybeans are expected.

“The Gross Value of Agricultural Production of 2020 is slightly below that observed in 2019. As a first estimate, the forecast value is R$605.4bn,” says the technical note. The value involves climate uncertainties such as droughts that can lead to delayed planting. Also the information is still incomplete about quantities and prices of products.

What is Gross Value of Agricultural Production?

The Gross Value of Agricultural Production shows the evolution of crop and livestock performance throughout the year and corresponds to gross revenues within the establishment. Its calculation is based on the production of the agricultural crop and livestock and the prices received by producers in the main squares of the country, of the 26 largest agricultural products in Brazil. The real value of production, minus inflation, is obtained by the Getulio Vargas Foundation General Price Index – Internal Availability (IGP-DI). The periodicity is monthly with update and disclosure until the 15th of each month.

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