Brasília – The Brazilian agribusiness industry is expected to expand by 2% in 2017, as per estimates issued by the Brazilian Agriculture and Livestock Federation this Tuesday (6) in Brasília. The growth rate will be weaker than this year’s. According to the CNA, the agribusiness Gross Domestic Product (GDP) will widen by between 2.5% and 3% in 2016.
The share of total GDP that the industry accounts for went from 21.5% in 2015 to 23% in 2016. The CNA’s technical superintendent Bruno Lucchi believes the growth tends to be sustained.
He believes the sugar and ethanol industry will keep growing next year, driven by rising prices. “Coffee production has yet to recover,” he said. Lucchi added that growth in other sectors, such as animal protein, will hinge of an economic recovery, which would mean people would have cash to buy. “There’s uncertainty over the extent of growth next year,” he pointed out. Lucchi also claimed that next year, weather issues will not bear as big an influence on grains production.
Agriculture and livestock account for 48% of overall exports from Brazil, according to the CNA. In 2016, agribusiness products will afford the country a relevant trade surplus, at USD 72.5 billion.
In 2017, CNA expects export amounts to keep growing as livestock and agro-industry products get shipped to new countries.
*Translated by Gabriel Pomerancblum
