Gross Value of Agricultural Production in 2019 has increased

With the end of 2019, the estimated Gross Value of Agricultural Production (GPV) is R$617bn (based on November data), an increase of 2.1% compared to 2018, which was R$604.5bn. With the new estimate, the value of this year is equal to the 2017 GPV, the largest ever recorded and considered exceptional for agriculture in the country.

The 2019 result was driven by improved livestock performance, which totaled R$213.7bn in production, with a real increase of 7.8%. However, the value of crop production fell slightly compared to the previous year, totaling R$403.2bn.

“The favorable international market, where the prices of meat, mainly chicken and pork, were at higher levels, and the quantities exported made the results reach favorable positions for the sector in 2019. In livestock, only milk had a decrease of 2.1%, a sharp increase occurred in beef, 5.1%, pork, 12.5%, chicken, 13.1%, and eggs, 24.1%. The end of the year festivities in the country are undoubtedly stimulating domestic demand for these products,” explains a technical note from the Department of Financing and Information, of the Ministry of Agricultural Policy Secretariat.

As previous months’ GPV estimates already pointed out, a group of products performed well this year, especially cotton (up 16.6%), peanuts (14.6%), bananas (16.6%), English potatoes (93.4%), beans (55.9%), castor beans (36.9%), and corn (24.3%).

On the other hand, five products presented decrease in revenues: rice (-4.9%), coffee (-26.9%), sugar cane (-9.6%), cassava (-14.1%), and soybean ( -10.4%).

Regions

Among the regions of the country, the Midwest remains in the lead with a production value of R$182.7bn, followed by the South (R$153bn), Southeast (R$147.9bn), Northeast (R$57.7bn), and North (R$37.8bn).

Outlook for 2020

The first estimates for 2020 indicate a GVP of R$635.2bn, 2.1% higher than 2019. “This estimate is largely made up of the likely recovery of soybeans,” the note said.

What is GPV?

The GPV shows the evolution of crop and livestock performance throughout the year and corresponds to gross revenues within the establishment. Calculated based on the production of the crop and livestock, and the prices received by producers in the main markets 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.

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