CNA: Brazil’s agricultural GDP expected to rise up to 5% in 2022; rising costs are worrying

Brazil’s agribusiness gross domestic product (GDP) should grow at a slower pace in 2022 amid higher costs that flatten farmers’ margins.  The Confederation of Agriculture and Livestock of Brazil (CNA), estimates a rise of 3% – 5% in GDP in 2022.

According to the study which was carried out together with the CEPEA (the center for advanced studies in applied economics), the agribusiness GDP should close 2021 up 9.37% compared to 2020.

The largest agricultural organization in Brazil stated that even with the rise in commodity prices and the increase in the production of some crops, the rise in production costs should flatten the profit margin of rural producers in general.

The CNA also cited some factors that should determine the behavior of the 2021/2022 crop in Brazil and need to be closely monitored next year, such as logistics and the supply of inputs — much of the raw materials for fertilizers are imported, and there are concerns about a global fertilizer shortage in addition to the high price.

Even so, the CNA projects a record grain harvest of 289 million tons in 2022, up 14% from 2021 amid the expectation of a recovery in corn production.  Corn was heavily affected by drought and frost in 2021.

The gross value of agricultural production (VBP) should add up to 1.25 trillion reais in 2022, a growth of 4.2% compared to 2021, according to the survey.

Source: Money Times

To read the full original article, visit the link:

https://www.moneytimes.com.br/pib-do-agro-do-brasil-deve-crescer-ate-5-em-2022-e-alta-de-custos-preoccu-diz-cna/

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