Value of agricultural production in 2021 to increase by 11.8%

The gross value of agricultural production (VBP) in May this year reached  R$ 1.11 trillion, an increase of 11.8% over the 2020 level of R$ 993.9 billion. The biggest contributions to growth are seen in rice, corn, soybeans, and beef, which had two consecutive years of strong price increases.

Crops had an increase in VBP of 15.8%. Livestock, 3.8%. In 2021, these two activities reached the highest value in 32 years.

The products whose VBP increased the most were rice (5.7%), corn (20.3%), soybeans (31.9%), and wheat (35.1%). Cocoa and sugar cane grew more slowly.

According to José Garcia Gasques, coordinator of policy assessment and information at the Agricultural Policy Secretariat of the Ministry of Agriculture, Livestock and Supply, some groups have been negatively contributing to agricultural growth, such as potatoes, coffee, beans, orange, tomatoes, grapes, and livestock:   specifically milk, pigs and eggs. According to Gasques, this occurs due to the effects of lower prices or smaller quantities produced.

Although there were periods of drought that affected crops such as corn and beans, prices have helped to reduce this impact. These effects were felt mainly in Paraná and Mato Grosso. Corn was particularly harmed. The second crop, which is the most important, was 5 million tons less than in 2020, and lower in grain yield.

The growth in the VBP can be attributed to the exceptional performance of soybean exports in grains and meats, favorable prices, and the grain harvest, despite the lack of rain. The company’s projections for the supply chain (Conab) and the IBGE are for a large harvest.

Sharing is caring!