Soy, Biodiesel Chain GDP to Grow 20.72% in 2023; Revenue on Downward Trajectory

According to a study conducted by the Center for Advanced Studies in Applied Economics (Cepea – University of Sao Paulo) in partnership with the Brazilian Association of Vegetable Oil Industries (Abiove), the total GDP of the soy and biodiesel production chain is expected to grow by 20.72% this year compared to 2022. However, in terms of revenue, the results are expected to decrease by 22.3% due to less favorable prices, amounting to R$637.3 billion.

This data indicates that the income earned by those involved in the production chain is expected to decrease by 6.23% when adjusted for Consumer Price Index (CPI) inflation compared to last year.

Due to this negative pressure, the representation of the sector-specific GDP in the agribusiness GDP and the Brazilian GDP has been downwardly revised to 24.3% and 5.8%, respectively.

Foreign Trade

Considering the historical series record that began in 2010, the second quarter of 2023 marked a record in exports of products from both the soy and biodiesel production chains: US$26.8 billion. Compared to the same period in 2022, there was a 10.04% increase in value and a 30.88% increase in volume.

This increase in export value was due to higher volumes of soybeans and soybean meal shipped despite price decreases of 15.28% and 3.61%, respectively.

Values sent to the Middle East (30.92%), Africa (27.90%), the European Union (11.57%), East Asia (4.51%), and Southeast Asia (0.30%) decreased between the second quarters of 2022 and 2023. Values increased for North America (100.66%) and China (21%), which accounted for 60.58% of the chain’s exports in the quarter.

Source: Globo Rural

To read the original news publication, please visit: https://globorural.globo.com/economia/noticia/2023/10/pib-da-cadeia-de-soja-deve-crescer-em-2023-mas-renda-dos-setores-envolvidos-tende-a-cair.ghtml

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