Gross value of agricultural production should reach R$601.9bn in 2019

The Gross Value of Agricultural Production (VBP) should reach R$601.9bn this year, based on August’s data. This value is the second highest in 30 years, according to a historical series started in 1989. The first occurred in 2017, with R$607.9bn. There was also a 1.5% increase compared to 2018 (R$593.1bn). According to the Department of Finance and Information of the Secretariat of Agricultural Policy, crops represent R$394.8bn and livestock, R$207.2bn of this year’s VBP.

This year’s expected grain harvest of 242.1m tons (according to Conab data) and livestock performance have been the main growth drivers.

Among the crops, the highlights are cotton and corn. “The best results for the year are in herbaceous cotton, with an increase in GVP of 14.5%, peanuts with 14.5%, bananas with 19.3%, potato with 116%, beans with 56.1%, orange with 4.7%, castor with 29.8%, corn with 22.1%, tomato with 16.1%, and wheat with 8.5%. The values of cotton and maize have hit a record in the analyzed series,” says the note from the secretary of the Ministry of Agriculture, Livestock, and Supply.

In livestock, growth was driven by the production of beef, pork, chicken, and eggs, due to price recovery, except for milk, which registered a decrease in value.

Some groups presented a reduction in the VBP compared to 2018. They are: rice (-6.5%), coffee (-24.7%), sugar cane (-8.9%), cassava (-11, 7%), soybeans (-12.6%) and grapes (-5.7%). “Prices and quantities were generally the main factors affecting these products this year.”

Ranking

The five best performing products of VBP are soybean, corn, sugar cane, cotton, and coffee.

“These represent 77.7% of the value of the crops. The leading states are Mato Grosso, São Paulo, Paraná, Minas Gerais, and Rio Grande do Sul ”.

What is VBP?

The VBP 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 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 the update being disclosed by the 15th of each month.

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